ok boys, this could get very exicting I hope.
as I have been stressing for many weeks that gold and oil are both looking ready for a good pop. gold (to me) was in a correction and would take all weakness as a chance to get in, and oil was after breaking out of 45 was a clear signal that the down trend may have ended and now is about to form a trend. UP!!!
I hope those that followed me are well position in HGU for gold in the 11s or lower recently.
and technically I am happy to report that other experts are inline of what I see and here are some of their charts to save me some drawing time.
gold after breaking the massive down trendline is now holding very well above its 200 day moving average on the hourly chart, looking at the hui index which tracks closely to the performence of HGU you can clearly see we are (potentially today) on the verge of a breakout, once the breakout happens it could be exicting time as it gold share is slowly but starting to outperform gold again which can only mean one thing. Gold will rise, but you can see gold share take off first
I dont trade the GLD fund because they are in US dollars, but you can see the bounce off the trend channel is another signal once that sharp downtrendline is broken, all hell breaks loose
as for oil, oil was clearly went from being in a bear trend into a bull trend when it broke above 45, and since they all dips should be viewed as a buying opportunity or for oil bears to GET THE PHUCK OUT! I Hope you did. look at the posted chart below, the down trend is clearly broken, and when I said a day ago that unless oil can fall below 42 to confirm breaking to the downside it didnt, it held up perfectly and thus the massive 4-5 dollar move upward.
and finally the USO oil fund which again I do not trade because of the dam 30% exchange rate, but also clearly has bounced off the trendline and has retested the trendline after it broke the downtrend line.
so we could be in some exciting time breakout profits here folks. the hui index I think still need to close above 290, if there are any dips between hui and oil for the next little while I would view that has the last test of the lows/supports before taking flight
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