On Wednesday the U.S. dollar index sliced through final support at its previous all-time low. The index closed on Friday at 73.7, a new record low, having fallen seven sessions in a row. RSI is flattening out in oversold territory, as is MACD-Histogram. The dollar may bounce within a day or two from the bottom rail of the newly drawn channel.
While the dollar plunged, March silver rocketed from the bottom of
its channel to the top in eight sessions. Silver achieved an intraday high on Friday of $20.06 but could face resistance near the round number. Friday's candlestick, similar to a hanging man, butted against the top rail, suggesting that the rally is running out of steam. At 85.55, RSI is in nosebleed territory, as is MACD.
The weekly chart shows that silver's rise has gone vertical. But neither RSI nor MACD, while overbought, are as yet at the levels seen at the previous blowoff top in May 2006.
On Thursday, GDX tested its January high, closing at $54.38, a new record, but on Friday, the gold-mining ETF fell $1.26. RSI has been repelled at 70, and MACD-Histogram has flattened out. GDX is likely to close the gap above first support at around $52.
The weekly chart shows GDX bumping up against the top rail of its blue channel. MACD has made another bullish crossover but remains at overbought levels.
April gold broke out of a tiny flag on Wednesday, then rose on Thursday and Friday, closing at an all-time high of $975. Although RSI has entered the overbought zone, gold looks like it could continue its rally, perhaps to the top of the blue channel from August, currently around $990. The small real body on Friday's candlestick could, however, denote uncertainty and herald a pause in the trend.
On the weekly chart, gold has broken out of its rising channel in a parabolic move. MACD is at spectacularly overbought levels, way above those seen at the previous blowoff peak in May 2006. Prices achieve their biggest gains just before such peaks, of course, before crashing dramatically.
On Wednesday the U.S. dollar index sliced through final support at its previous all-time low. The index closed on Friday at 73.7, a new record low, having fallen seven sessions in a row. RSI is flattening out in oversold territory, as is MACD-Histogram. The dollar may bounce within a day or two from the bottom rail of the newly drawn channel.
While the dollar plunged, March silver rocketed from the bottom of its channel to the top in eight sessions. Silver achieved an intraday high on Friday of $20.06 but could face resistance near the round number. Friday's candlestick, similar to a hanging man, butted against the top rail, suggesting that the rally is running out of steam. At 85.55, RSI is in nosebleed territory, as is MACD.
The weekly chart shows that silver's rise has gone vertical. But neither RSI nor MACD, while overbought, are as yet at the levels seen at the previous blowoff top in May 2006.
On Thursday, GDX tested its January high, closing at $54.38, a new record, but on Friday, the gold-mining ETF fell $1.26. RSI has been repelled at 70, and MACD-Histogram has flattened out. GDX is likely to close the gap above first support at around $52.
The weekly chart shows GDX bumping up against the top rail of its blue channel. MACD has made another bullish crossover but remains at overbought levels.
April gold broke out of a tiny flag on Wednesday, then rose on Thursday and Friday, closing at an all-time high of $975. Although RSI has entered the overbought zone, gold looks like it could continue its rally, perhaps to the top of the blue channel from August, currently around $990. The small real body on Friday's candlestick could, however, denote uncertainty and herald a pause in the trend.
On the weekly chart, gold has broken out of its rising channel in a parabolic move. MACD is at spectacularly overbought levels, way above those seen at the previous blowoff peak in May 2006. Prices achieve their biggest gains just before such peaks, of course, before crashing dramatically.
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