Loading ...$YEN – Daily
Before posting the $YEN chart, just want to make a mention about Red Label’s Theory (RLT) and how the price of gold relates to the $USD. According to RLT, the Price of Gold (POG) after the last knock down was too low – until the close on Friday. Fridays close was $GOLD at $1347.30, & $USD at 89.03 Using the RLT shortcut we find (1200/.8903 = $1347.86) Amazing. The RLT price and the closing POG are within a half a dollar, near enough.
$YEN – Daily
The use of divergence between the oscillators and the closing price can be very helpful. Back in early November 2017 the positive divergence (PD) suggested a rally in the $YEN. Some thought the rally would be a small one before the $YEN resumed the decline, but there was indeed a good rally and a break out to new highs. Now it feels like the $YEN rally will continue on much higher. The oscillators disagree.
Not saying the $YEN bull and its Bobbsey Twin GOLD bull are dead, or even derailed – but there is a good chance there is a pull back before continuing higher. Next week should tell the tale…
IMO the ratio appears to acted as resisitance both up and down recently SF? As of close Friday IMO $Gold was a currency move back to neutral relative to G20 FIAT. IMO the GSR is concerning at the moment relative ST interesting LT. $Copper dropped below $3.00 Friday also.
IMO the reverse resistance was seen in XAUEUR 1090 (the ratio converted backwards via USD/EURO Forex)
IMO the ratio will break when where how who knows? Manipulation anybody?
Yes I used the “M” word Fully – Sorry
red label,
My calculations showed gold below neutral when it hovered near $1313 during the last down draught. Agree gold was a currency move back to neutral on Friday as determined by your discovery POG = $1200/$USD. In any case it was a heck of an adjustment. Notice the GSR ratio continued to move higher for a couple of months after the birth of baby bull in January 2016.
http://stockcharts.com/h-sc/ui?s=$GOLD:$SILVER&p=W&yr=10&mn=0&dy=0&id=p67647944161&a=370170675&listNum=9
Still, the GSR is a concern. Will commodities get caught in the down draught if the SM sinks, I wonder? Also noticed copper, palladium and platinum not joining the giddy-up party.
Sorry, my back country brain does not understand “reverse resistance in XAUEUR 1090.” Is that the $XAU index in Euros, or is it GOLD in Euros, and what is reverse resistance, please? Need a little help with that. Can you post a chart?
Thanks, red label. Am a learning much here at the tent.
OK, am going out for a walk in the afternoon sunshine…