Gold is in a new bull market — see important charts
- Posted by PeterLBrandt
- on November 9th, 2012
Gold (priced in Swiss Francs) has begun the next leg of its bull trend
As many of you know I use the Gold/Swiss Franc ratio as a leading indicator of the price of Gold. This indicator can be used to trade Gold against the U.S. Dollar or directly against the Swiss Franc in a USD-neutral trade.
The monthly, weekly and daily charts of the Gold/CHF ratio conclude the following:
- The longest-term trend (monthly) remains solidly up
- The medium-term trend (weekly) has a history of developing congestion areas prior to each new advancing thrust
- The daily graph completed a 12-month symmetrical triangle in August. The October break in Gold simply retested the upper boundary of this triangle. This retest appears to be over — and the next advancing trend in Gold has likely begun. Only a close below the November low on the daily chart would cause me to rethink this interpretation.
The Gold/CHF ratio has a target of CHF 1,800.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Peter Brandt entered the commodity trading business in 1976 with ContiCommodity Services, a division of Continental Grain Company. From his start in the commodity industry, Peter's goal was to trade proprietary funds. But, he first needed to learn the business. More »