New Gold Bull Market? Not Until This Happens!
Here is an update from our good friend Chris Kimble at Kimble Charting Solutions. Chris outlines what he would like to see to confirm the bull market for gold and what could lead to the next big pop higher.
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After a big summer rally, Gold peaked out at $1566/oz in September.
Since then, Gold prices have been consolidating between $1475 and $1550.
So what’s happening here? Enter the Swiss Franc currency…
In today’s chart, we look at a key indicator (and correlation) for Gold. As you can see, the Swiss Franc has an uncanny resemblance to Gold.
Both Gold and the Franc are testing heavy resistance at the same time.
Until both breakout at (2), odds are low that a new Gold bull market emerges with another big rally leg higher.
Looking back, it wasn’t until both Gold and the France broke out above price resistance at each (1) that a new Gold bull market emerged. Can it happen again? Stay tuned!
It’s been 5-6 weeks since the high yet the gold bears still haven’t managed a 38.2% retracement…
https://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=1&mn=3&dy=0&id=p46301906407&a=687508565
@Bottomcatcher on Twitter:
“One for the watchlist.. #copper long term” #CHART
https://twitter.com/bottom_catcher/status/1183835757917724672
The way I see it, gold has broken its bear market downtrend while the Franc has not. So perhaps gold is foreshadowing what’s next for the Franc. Regarding the stout resistance gold finds itself at, the lows of 2012 account for plenty of it as does the top of the uptrend channel it is in — which precisely marked the recent high:
https://stockcharts.com/h-sc/ui?s=%24GOLD&p=W&yr=9&mn=9&dy=0&id=p10847929657&a=693559276
In addition, the impulsiveness, volume, and relative strength of the last few months strongly indicate that a new bull has begun and the quarterly chart nearly proves it all by itself.