Where Do The Pulses Stand On Gold?

Today I’ll venture into the precious metals via the World Gold Index and the FoxPulse. At the FoxPulse4 level the chart (above) turned bearish (red arrow) in October 2012 when a break of the Beta-X trendline was accompanied by a bearish divergence between price and the RSI. This chart now needs to close above the 1619.70 level (horizontal cyan line) to turn bullish.

Of course that would require quite the rally from here. Let’s “zoom in” via the lower level pulses. Here is the FoxPulse3 chart starting from that 1619.70 level:

Here we see a different story as the chart turned bullish on August 12th. On this chart we have a reverse head and shoulders pattern. The two Beta pulses being the shoulders and the X pulse between them the head. The Delta-Alpha trendline (in orange) serves as the neckline. We are now watching the Beta-X trendline to warn us of a reversal back to a bearish view.

Now for FoxPulse2.

Here is an example of being whipsawed. A bearish indication was given on September 12th as the Beta-Z trendline was busted. However, the move back above the Alpha pulse on the Fed announcement turned the chart back bullish!

Finally FoxPulse1:

This chart also turned bullish on Fed Day.

In conclusion, we have FoxPulse1, FoxPulse2, and FoxPulse3 bullish. FoxPulse4 and FoxPulse5 (not shown) are bearish. This translates into a 75% bullish position. As both the Level 1 and 2 charts are on new bull signal Alpha Pulses, it is the level 3 chart which would trigger sells on all three levels. That is, a break of the FoxPulse3 Beta-X trendline would immediately make this index a 0% bullish allocation!