Gold Bugs: Shakeout Or Fakeout, Part 2 of 4

This is the second of four charts about gold. Part 1 demonstrated weakness in DXY in June of 2010. The chart above shows that during the DXY 2010 weakness, GLD had a sharp rally. In July of 2011 gold began a long and steady downtrend. DXY remained sideways to strong. The downtrend in GLD was broken early in 2016. If you review "Gold Bugs Part 1" you should see a topping formation (bearish shark pattern) as DXY got near Fibonacci .382. If you look at GLD it reversed its downtrend very near the Fibonacci .382. I do not think this is coincidence, I think GLD will be the INVERSE of DXY, and the strength should continue in GLD. In the chart above GLD touched its long term moving average. The Aroon is positive, and MACD-65 is positive. GLD looks like it will re-test support at either $111 or $108. I look to the Stochastic/RSI indicator to bottom at one of these price points. Then I will most likey go long on GLD. Now, if you would be so kind, move on to "Gold Bugs Part 3".