So far we have reviewed all time frames of the World Gold Index except for the daily. The most striking fact is that every time frame is bullish!The daily chart is different. After the consolidation ended in August this market has been in a strong rally with only a couple of minor pullbacks. When TD sequential reached bar #13 in mid-November price didn’t even bat an eye; we didn’t even get a consolidation. On 11/25/09 we hit TD Combo sell bar #13. This time we reached above, but never closed above, the risk level (1216.60) and then experienced a price flip that caused my system get out on the close of 12/4 at 1161.80.
With the higher time frames bullish this price activity on the daily chart should be considered a correction, and so the goal is to find a good spot to get back on the long side. Price is currently testing TDST support at 1101.20 and a potentially bullish divergence between the RSI and the Composite index has developed.
Bottom Line: With all the higher time frames of the world gold index being bullish there is an opportunity to get long on this pullback. The daily chart is close to a technical buy signal while just above support. Let's see what happens.
See yesterday’s post for current Technical Analysis of for longer-term positions.
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