Before I dive into the ASX Gold Sector (XGD) WEEKLY CHART OUTLOOK as a preliminary analysis before the next anticipated Gold Rush, which may potentially is in the making, I would like to remind once again the POSITIVE CORRELATION between All Ords. (XAO) and Crude Oil. Just a reminder no more on this front.
To the shiny/precious metal sector ( XGD.ASX) weekly chart outlook : Still considered range-bound as far as it’s intermediate term trend is concerned within a major uptrend.
SUPPORT in the zone of 4000-4100 as marked in Yellow. RESISTANCE in the zone of 4900-5000 worth watching.
If we focus on the CLIMAX LOW which may also be seen as a potential HEAD of a HEAD & SHOULDERS continuation pattern there has been NO test of that low ( marked as HEAD & CLIMAX) to date. Each subsequent test of the HEAD/CLIMAX has occurred at higher level ( marked as ST). Last one which I marked as LPS ( Last Point of Supply or potential higher trough) may suggest an upside breakout, completing the pattern, may be imminent as long as the low of LPS holds. Failure would require new analysis of XGD.ASX.
One can imagine the cause built in this potential re accumulation trading range which has been in effect around a year. If we see an upside breakout confirming the pattern that would enable us to take PnF counts. There are some which may already be taken, like the low pole of the CLIMAX already if we wish.
This analysis sets the preliminary ground work for the sector, where some subjects (stocks) within may already be a doing all the right things. Could rest of the fundamentally sound producers within also follow suit is the question ???
Thanks for the friends and members dropping a line or two from time to time with some of their insights. Anyone can/may do that if they wish by return email to any of my posts.
Any tips for the Melbourne Cup ?
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