Loading ...By Peter Degraaf
For the benefit of subscribers and to help yours truly to make good decisions, we plot an indicator with ten components on a daily basis, that we refer to as the GDI. On Monday the GDI closed at 39% and on Tuesday it moved into positive territory with a reading at 61%.
Charts courtesy Stockcharts.com unless indicated.
As the following chart (courtesy goldchartsrus.com) shows, the long-term historical pattern (black line), is for gold and mining stocks to rise for 8 months, once the June-July lows are put in place.
The black line tracks a 45 year average of gold prices.
Another component of the GDI is a chart that compares gold bullion to the US dollar.
Price carved out an upside reversal on Monday (green arrow), at the bottom of the channel and built on that reversal Tuesday. The supporting indicators are ready to turn positive. The 50DMA is in positive alignment to the 200DMA (green oval). Watch for a breakout at the blue arrow that will mark the start of the next wave upwards.
The Gold Direction Indicator just turned Green!
By: Peter Degraaf