The bottoming process has been grueling, and I see some hesitation from members. There have been a few scares along the way, but we are on track for a cycle low.
In bull markets, you want to buy dips below the 200-day MA. The current decline below the 200-day is progressing beautifully. Prices bottomed 4-days after the breakdown (below the 200), and we are very close to closing back above it. Dips below the 200-day have lasted about 12 trading days. Today marks the 12th day, and I expect to retake the 200-day either today or tomorrow.
-US DOLLAR- The dollar formed a long bearish engulfing candle after breaching the upper Bollinger band and testing the prior high. We could see a little more chop, but a top is likely.
-DIPS BELOW THE 200-DAY- Prices bottomed 4-days after closing below the 200-day. Today marks the 12th day below the 200-period MA. Prices should close above $1308.67. I expect gold to rally and breakout above $1400 during the next cycle advance.
I’ll be out of the office most of the day.