Don't Ignore This Chart!

Gold Tests The Breakout Again


The chart of Gold is getting interesting again. It keeps retesting this level. There are reasons to believe the breakout is at hand. I have used GLD to represent Gold here.

The MACD is turning up above zero for the first time in 18 months shown on the chart.

This is also the two year anniversary of the commodity low in 2016 when everything started to kick up. One of the reasons that Gold is kicking up is the weakness in the USD. If that can continue, this will be an excellent trade. There are a couple of major hurdles for the USD crosses like the ($EURUSD) and the ($JPYUSD) that are in play. I'll have more of that in this evenings Commodities Countdown.

One of the concerns about Commodity related trades is how poorly the Canadian market is trading. It is down 7% on the year. All bases start somewhere. Maybe this is Canada's low and the commodity country index starts to improve from here. It's been a tough start to the year, not just the last few weeks. If the Commodity country indexes are struggling, it adds caution to commodity related trades for me.

Good trai

We'll keep watching to see how it works out, but the setup is really nice on the GLD trade.

In other news, The Stock Charts for Dummies book is now available wherever books are sold. 

Stock Charts for Dummies Reviews

The reviews for the book are starting to come in.

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Available through the bookstore or wherever books are sold.

Good trading,
Greg Schnell, CMT, MFTA

Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More
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