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![]() Gold and the US Dollar By Chris Vermeulen May 19, 2010 It has been an interesting week in the market as stocks and commodities push to extreme support levels. Below I have posted some charts showing where the market is currently trading at and what I think is likely to unfold. Gold Futures - 4-Hour Candle Stick Chart The price of Gold is testing a key support level. I figure we will see gold try to stabilize over the next week or so as it digests the recent drop in value then start to head back up. ![]() US Dollar Index - 60-Minute Candle Stick Chart The US dollar and gold have been moving together the past few weeks as more countries pop up on the radar for serious financial issues. This is helping to boost both the US dollar and gold as investors around the world starting buying what seems to be safety. The dollar has had a sizable pullback and is now testing a key support level. This could be the start of a possible head-and-shoulders pattern forming which means the dollar rally could be nearing maturity in the next couple weeks. ![]() Conclusion: I feel gold and the dollar will bounce in the coming days from their support levels. Once the dollar forms a possible right shoulder, we will most likely see them pop and rally. We are still seven trading days away from a cycle low on the broad market making this scenario very likely to play out. At the moment I am getting a lot of mixed signals and during times like this I prefer to stay in cash because volatility will rise and it is easy to get shaken out of trades. If you would like to get my real-time trading signals and set-ups, check out my services at: www.TheTechnicalTraders.com. TheGoldAndOilGuy.com is owned and
run by me (Chris Vermeulen), an individual gold trading specialist.
After sharing my gold analysis with friends, traders and financial
advisors, I decided to make TheGoldAndOilGuy.com my full time job in
2003. This service was designed from the ground up to help individual
traders who want to focus on consistent, accurate and profitable trades.
Over the past ten years my strategy has been refined to one golden trading
vehicle which has an almost 100% accuracy. The GLD (DGP and DZZ) gold
exchange traded funds are now the most accurate trading vehicle I have
seen, so it's my vehicle of choice. Members of TheGoldAndOilGuy.com not
only get to trade my signals, but see my live trading charts and ask me
all the questions they wish. My goal is for all of us to make money
and have fun in life.Home | Products and Prices | Buying | Selling | FAQ | Articles | Forms | Top Website © Copyright J&M Coin & Jewellery Ltd. 2010. All rights reserved. Pricing index programming and site hosting by Sandrix Technologies Ltd. (AXD) | |||||||||||||||||||