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Lots of Data That Will Determine if the Dollar Goes Higher

Let's take a look at gold and see what it's done. First, it is down 1.63% going into the latter part of os the week now. Okay, and more importantly, it's staying under so far the 18-week moving average up closes, the breakdown hasn't caused any real bounce to speak of. Yes – you get intraday little bounces but this is not a change, is what I'm saying.

The trend is clearly to the downside, the market is now staying under very easily both the 200 and 100-day average. That's a signal things aren't good and now you have to keep your eye on how fast is the 18-day average going to fall to that number.

That is something you've got to keep your eye on as a technician. And you've now got two closes that are underneath the Bollinger Band.

So you've pulled this rubber band a little bit and it can bounce back in here, but I'm looking at the $2023 area as the first resistance point on the chart. You'd have to get over $2047.30 to negate the downtrend and you are oversold. So it fits in at least in my head as a technician that we could get a bounce in the market, to just get to the right-hand side of the Bollinger Band.

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