Weekly gold prices are breaking above trend lines. A new uptrend? We don't know yet. I will be watching for either a break above prior highs, such as the mid-downtrend high in early November, or a correction to the current rally that gets reversed.
The mid November high is marked on the the daily bar chart above. A break above that would be constructive for the bulls. A break to new lows would have us following the bears and entering to the short side again. We don't really care which way it goes; we just trade it.
Mixed picture from the moving average envelopes. Isn't it interesting how basic price bar analysis often leads us to the same basic conclusions as fancy indicators. Hey, I understand wanting some confirmation; some hand holding. That's why these indicator charts are here.
RSI shows a mixed picture as well. Daily RSI just now starting to really poke into the uptrend area. Let's keep an eye on how pullbacks in price and RSI form from here.
The Dynamic Trailing Stop indicator is now in uptrend mode on both time frames.
Weekly ADX is still trending down. Daily ADX has turned up a bit. +DMI is gaining strength over -DMI on both time frames at the moment.
Current Stance
Long Term: Flat
Intermediate Term: Flat
Definitions:
Flat = no position / not long or short the market.
Sell Short = positioned to attempt to make money on price declines
Buy / Long = positioned to make money on price advances
Hold = hold a long position
Hold Short = Hold a short position
My medium to long-term automated system is also out of this market at the moment.
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