Don't Ignore This Chart

Gold Tests The Breakout Again

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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.


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Good trading,
Greg Schnell, CMT, MFTA

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Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is also the author of Stock Charts for Dummies (Wiley, 2018). Learn More
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