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Today I would like to show you the Chartology of the US Dollar based on charts from the short term to the very long term that are painting a positive picture for the US Dollar. What I’m seeing on the charts is not going to be just a short term event type thing but a longer multi year positive change for the dollar. Understanding the movements in the dollar can help us understand other movements in other areas of the markets which is very important to getting the big picture right. If you can get the big picture and trend right that goes along way in knowing which side of the markets to be on. In a bull market you want to trade with the uptrend and when your in a bear market you want to trade with the downtrend. This is simple to understand but much harder to do in practice. So with that said lets take a good long hard look at the US dollar and see what the charts are telling us.

I’m going to start a little out of sync first so I can show you the H&S top that so many investors are looking at to reverse the dollar back down again. IMHO this H&S is dead, broken and is giving many a false sense of security that the dollar is going down. This first chart is a four year weekly look that shows the failed H&S top on the right side of the chart. As you can see on the chart below it has a beautiful looking H&S top that so many are seeing. It wasn’t until the last low was put in place that the H&S top scenario began to breakdown. There are two blue triangles that made up the left and right shoulders while the potential H&S top was forming. Those two blue triangle look the same but they have two complete different scenarios. The blue triangle on the left side of the head was an even numbered triangle that told us it would be a consolidation pattern to the upside. The blue triangle on the right side of the head told us it was going to be a reversal pattern to the upside as it has an odd number of reversal points, five.This was a very big clue to understand at the time as I told my subscribers that we would be one of the first to know that the H&S top was a failure as soon as the blue 5 point triangle broke out to the upside. The US dollar has been trading out of that blue five point triangle for three weeks and is now much higher than the original top of the right shoulder. The last order of business will be for the dollar to trade above the Head which will leave no doubt about the H&S top failure.

Now that we have that cleared up lets now look at some more charts of the dollar. In order for the US dollar to have a multi year rally there has to be a big enough base to sustain such a move. This next daily chart shows an inverse H&S bottom that broke out in late 2011 where the price action formed the red triangle consolidation pattern just above the neckline. That was a bullish development at the time. The rally eventually ran out of gas and corrected back down which looked like that was going to be the head of the H&S top we discussed on the chart above. The bulls came back in and saved the day by building out the right shoulder triangle reversal pattern to the upside. As you can see on the chart below the bulls have wasted little time in rallying the dollar higher in an almost vertical move. If you look at most consolidation patterns this is usually the result once a consolidation pattern is finished forming. Note the red bullish rising flag that formed back in 2010 that worked out as a halfway consolidation pattern with a near vertical move going into the pattern and a near vertical move leaving the pattern. This is Chartology at its best.

Lets look at a weekly chart that shows the inverse H&S bottom a little more clearly than the daily look. The take away from this chart is that the dollar has been making higher lows except for the small low made at the double top. Other than that this is an uptrend regardless of how some are interpreting the fundamentals in a negative way. A break above the small double top at 84 will be the highest the dollar has been since the rally high back in 2010.

With this next chart I want to show you that the inverse H&S base, that we looked at on the chart above, is only just a very small part of a much bigger base that is being built. You can see how tiny that inverse H&S bottom is compared to the big picture.

I would like to show you the big base that is under construction from the monthly perspective so you can see that the price action is starting to close in on the big black dashed support and resistance rail. Our small inverse H&S bottom that I’ve shown you on the charts above strongly suggest that the dollar will breakout through the big support and resistance rail by its price objective. Folks that is a huge base the US dollar is building and the consequences will be felt for several years to come in many areas of the markets.

This next chart for the US dollar is a very long term monthly chart that goes all the way back to 1980. Sometimes in charting one can have an Epiphany or an eureka moment where all of a sudden there is clarity beyond what you were initially looking for. I had such a moment with this next chart that has a lot of information on it. First you will see two bases labeled Big Base #1 and Big Base #2. These two bases are uncanny in their similarities. Some might call them fractals. The two bases are almost exactly the same height as well as time. The only real difference between the two bases is at point #3 which was a tad higher on Base #2 whereas in Base #1 it was a little longer. Other than that they are amazingly similar. Note the breakout and backtest from Base #1. If you look real close you can even see a small gap that was made right at the breakout point. The support and resistance rail held on two backtests which told us the S&R rail was hot. Note the blue bullish rising wedge that worked out as a beautiful halfway y pattern. The height of Base #1 also measured out real close to the high where you can see the H&S top. As I said there is alot of information on this chart so I’ll post it right here and carry on with the same chart again a little further down.

Carrying on with the same chart there is another important observation I would like to share with you. Note the H&S top that formed back in 2000. If you look at a gold chart you will see a big inverse H&S bottom that launched its bull market. A dollar top and a gold bottom. Now I want to draw your attention to the bottom right hand side of chart that shows point #4. That low at point #4 marked the absolute high for gold back in the fall of 2011. So what is this chart telling us? Strictly from a Chartology perspective I think it’s talking loud and clear to us. If that S&R rail on big base #2 gives way we are looking at a multi year rally for the US dollar and most likely a decline in the precious metals complex.

Lets now look for some clues to see if the process has started where a rising US dollar is having a negative effect on gold. This next chart is a combo chart that shows gold on top and the US dollar’s big base #2 on the bottom. I want to focus your attention to the two purple dashed lines with the purple arrows. What the purple lines tell is how the dollar was showing us back in the fall of 2011, when gold was making its all time at 1920, the dollar failed to make a new low even though gold went nearly parabolic. This is a very big clue that the dollar was bottoming out. The dollar never made a new low after its low in 2008 while gold rallied almost $1000 dollars into the fall of 2011. That is a pretty big positive divergence for the US dollar to gold.

I could show you several more charts comparing gold to the US dollar but this article is getting a little long in the tooth so I’ll leave you with just one more chart that is a 13 year weekly line chart. I know some of you won’t believe this next chart because it doesn’t meet all the strict rules for H&S top pattern. That’s fine because I have seen countless H&S tops, similar to the one gold is showing right now, play out beautifully. Some will say the neckline is to steep or the symmetry isn’t there or the volume isn’t right. I could go on and on but until the price action breaks above that neckline on the gold chart below it is what it is. With the US dollar breaking out from that red triangle while gold is breaking down from it’s H&S top the breakouts  match up pretty closely.

A good chart should tell a story that everyone should be able to understand even the folks that really don’t understand charting. These charts above are telling us a story of what is about to happen with the US dollar over a several year period. Investors create the charts, I don’t. I only interpret their actions by uncovering what they are doing. Charting IMHO follows the price action better than most disciplines whether it’s Elliot Wave, which there are some good analysis out their, cycles, or the fundamentals. Right now the folks that are watching the technical indicators, in the precious metals stocks, have been beaten up waiting for the bottom to form. The same is true in the stock markets right now. All the technical indicators are telling investors that  the Dow is so overbought it can’t go any higher until there is correction but the Dow keeps on going up regardless of what the indicators are showing. Yes at some point there will be a good correction as there always is. I’m sure you have heard the saying that the markets can stay overbought or oversold longer than one can hold out if one is on the wrong side of trade. No truer words have ever been spoken in regards to the precious metals complex or the stock markets at this time. All the best…Rambus
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EDITOR’S NOTE :
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Most Members are Staunch Goldbugs who have seen Rambus in action from the 2007 to 2008 period at www.goldtent.org and now Here at Rambus Chartology since early 2012 .

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To review his Work and incredible calls from the 2007-2008 period click on the “Wizard of Rambus’ ….’What If (2008 Gems) ! ”

http://rambus1.com/?p=1829

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We have many subscribers from all over the world who are glad they did as they enjoy the many daily updates and commentaries provided at this exciting new site.

As you will see Rambus (Dave from The Ozark Mtns in Arkansas) has prepared us for this difficult period by being one of the only ones to see and warn about the incredibly debilitating PM smackdown as early as Jan 2 2012 …click on the “HUI Diamond in the Rough” Post

http://rambus1.com/?p=1874

You will find Rambus to be a calm humble down home country tutor with an incredible repitoir of all the TA based protocols tempered with his own one of a kind style…simply put…He wants to keep his subscribers on the right side of these crazy volitile and downright dangerous markets

What is he seeing Now ?

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Tonight’s chart is a daily bar chart for gold that shows all the consolidation patterns since hitting the top of the rectangle back in October of last year at 1800 or so. If gold was ready to break below the bottom rail of the big rectangle, today would have been a good time to do so. Because it didn’t breakdown this morning that tells me the sideways correction that has been going on already for almost 3 weeks now, still has more work to do. Below shows what I think could be a smaller red rectangle that is forming below the brown shaded support and resistance zone that may end up being just one more consolidation pattern to the downside. The possible red rectangle is about 60 points and with today’s close  around 1575 or so would leave about 45 more point to go to reach the top rail.  At our most recent bottom there have been 3 main declines out of the H&S top and the two consolidation pattern.  This is a good example of how a downtrend works. It starts out with a top that breaks down hard and then a consolidation pattern forms and then when its finished you get another hard down and so on until you get a reversal pattern form at the bottom. I’ve labeled these 3 hard down phases A B & C.

This next chart is another daily chart that goes out a little further out in time that shows the top and bottom rails of the large rectangle gold has been in for 18 months or so.

This next long term daily chart shows the big trading range, blue rectangle, and our latest decline towards the bottom.

The next chart is a long term weekly look that goes all the way back to the 2008 crash low. This chart gives you a good look at our big Blue rectangle that I think is going to eventually break to the downside. Until it does its still consolidating.

This last chart shows what I consider the most important moving averages on the daily look. As you can see the price action is trading well below all three moving averages which is a negative.

This should get everyone up to speed on how gold is trading. I don’t really expect much action until the smaller rectangle is finished forming. All the best…Rambus

Editors Note:

Rambus Chartology is a Precious Metals Based Technical Analysis Site with a twist

“Give a Man a Chart and he can eat for a day : Teach a man To Chart and He will never Starve”

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PLEASE ADDRESS ALL QUESTIONS AND COMMENTS TO

FULLGOLDCROWN

gmag@live.ca

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How many times have we heard that the precious metals stocks are so oversold and cheap that they can’t go any lower and have to rally. They just can’t go any lower because the low in 2008 was the absolute low that will never be hit again as it was just an extraordinary event. A precious metal stock crash that was a once in a lifetime thing. So based on that low many PM investors bought their precious metals stocks thinking they were buying on the cheap. I’m wondering if they still think the precious metals stocks were a good buy at that 2008 crash low in the ratio charts?

Lets look at the Gold to the XAU ratio line chart that shows the high in 2008 that was supposed to be the new benchmark for the pm stocks being oversold. As you can see on this weekly chart that the 2008 all time high for this ratio was not the concrete ceiling that everyone thought it would be. Its been making new all time highs on almost a daily basis that doesn’t show any signs of topping at the moment.

Below is a very long term monthly chart for the gold to XAU ratio. As you can see this ratio chart behaved very well trading between the blue and red horizontal trendlines for many years. The crash in 2008 for the ratio started a course of events that have significantly changed the landscape. The blue horizontal trendline was always a good place to buy precious metals stocks for years as it shows they became very oversold when the ratio got up to 5.10 or so. When the ratio got down to the 3.70 area, red trendline that was a good place to sell and take profits. When they say, this time is different, usually that means nothing has really changed except the perception of a change. In this case something really did change and its not just a perception of a change. The 2008 crash actually did change things. All the old highs at the blue horizontal trendline have now been acting as support once it was broken to the upside. Maybe the fundamentalist can figure out what has changed for the precious metals stocks compared to gold. We will know in time but for right now this ratio chart is telling to be wary of the precious metals stocks.

This next ratio chart compares DUST to the HUI. A rising price shows DUST outperforming the HUI and a declining price shows the HUI outperforming DUST. Which investment would you rather have been in since last October? The chart below needs no annotations.

Lets compare the CDNX to gold to see if the juniors have fared any better than the large cap PM stocks. You can see the crash that occurred at the high in 2008 had a fairly decent recovery off the bottom but the CDNX fell way short of making it all the way back to the previous top. It instead built the blue bearish rising wedge that has taken the price action below the impregnable 2008 low.  As you can see this ratio has gone nowhere for almost a year now trading below the 2008 low which had been holding resistance.

I think this next ratio chart is very telling and is strongly suggesting that the bull market that gold has enjoyed vs the SPX is over for now. You can see the very nice inverse H&S base that launched the bull market for gold against the SPX. That was a reversal pattern. Now note the unbalanced double top that has broken down. The double top is a reversal pattern that is reversing the 13 years bull market for gold to the SPX. These charts talking are talking to us if we care to hear what they are saying.

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Fully

The Elephant in the room that nobody see’s. The monthly charts shows the price actions closing for the month of February below the neckline.

It is until it isn’t.

More at www.rambus1.com

Hello : My Name is Fullgoldcrown and I am a Goldoholic .

This is a Recap of Rambus Charts (with his commentary) showing what he is Seeing in the PM Stocks . (FEB 23 2013)

Since Rambus was the First to see this Huge Head and Shoulders Pattern developing in The PM
Miners Indices , there have been a plethora of naysayers , lead by other PM Market Technical Analysts.
The main theme of this negative reaction to this Huge Head and Shoulders Pattern is that
It is Too Big to be considered a valid pattern ….ie TOO BIG TO FAIL !

This is just one of many examples :

from an Recent Article by XXXXXX (CMT)

“Simply put, empirical results show that a H&S formation spanning a multi-year period most likely is NOT a H&S formation at all. The reasoning is also quite simple as a typical topping process or distribution does not normally take such a long time to take shape. In order words, it does not make much sense for strong hands to use several years to sell into strength in anticipation of a major reversal!”
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Now to the Rambus Charts and Commentary :

First The Chart of the Whole PM Bull Market to date that has everybody up in Arms (Monthly HUI)
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Chart #1
What Do YOU See ? February 15 2013

“Beauty is In the Eye of the Beholder” ..English Proverb

Tonight I want to show you a long term monthly chart for the HUI. It seems there is alot of disbelief that if a H&S pattern is too big that it some how makes it invalid or not to be trusted. I’m curious how that rumor ever got started? Nothing could be further from the truth IMHO.

Below is a monthly chart of the HUI that shows a massive 6 year inverse, complex H&S base, that launched the bull market for the precious metals stocks back in 2001. There is a certain beauty that 6 year H&S base has that most wouldn’t recognize. If you look on each side of the Head you will see two chart patterns, one large blue formation and one small red formation. They are positioned just the opposite on each side of the head. This doesn’t change the time component as the left and right shoulders measures out very close to each other. At the very top of the chart you can see what that big 6 year H&S based measured to. As you can see it measured up to 690 which was just a tad higher than the actual all time high.

The Chartology of the entire chart is one of beauty and symmetry which some will see and others won’t. They say beauty is in the eye of the beholder. What do you see?

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Next is a New Years Eve Rambus Special which showed the 11 Point Diamond Reversal Pattern which presently forms the Monster Head of the Pattern…This Chart was produced Dec 30 2012

Chart #2: Diamond in the Rough

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Fast Forward to Today (February 22 2013)

Lets look at one more example that you won’t find anywhere else except here at Rambus Chartology. You can see two reversal patterns, the 11 point Diamond that is actually the head portion of the much bigger H&S top that few believe is for real. The other pattern is the massive H&S top. Its good that few believe this pattern is authentic because everyone can’t exit at the same time. The lower it goes the more people will begin to understand what is actually happening but it will be too late to take action and they will most likely ride the whole thing down or sell into any counter trend rally that will occur thus putting a ceiling above the price action. I hope these examples help you understand what I mean when I talk about odd and even numbered chart patterns.

Chart 3: Nervous Breakdown !

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Now just in case you are tempted to dismiss or SHOOT the Messanger here is a a compilation of some calls that should Prove his credentials. Its called “What If” and its Rambus Incredible Call for a HUI crash in 2008 well before the fact !

EDITOR’S NOTE: WHEN DONE READING THIS LINK REMEMBER TO CLICK THE BACK BUTTON TO GET BACK AND READ THE REST OF THIS POST

http://rambus1.com/?p=1829

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And here is a chart from May 3 2012 (9 months ago) ..that was predictive of the plunge to the eventual neckline
of this HUGE Head and Shoulders Pattern

Chart 4 Look Out Below

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This bottom of course was followed by a Wonderful Bullish run from August to September 2012 to form the right shoulder top at 530
Rambus Subscribers were all in NUGT from early August until this run ran out of steam

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OK

Its Friday Nite February 22 2013 . The week that just passed was Devestating for gold bulls and featured what seems to be a capitulatory crash in all things PM . Searching the Web for some Hope , This Gold Permabull has found it . Amongst the wreckage of dreams and portfolios, bullish bottom callers abound. The following well seasoned and respected analysts again join in a chorus called
“THE BOTTOM is In”

Just Initials …to protect the guilty 🙂

1 A H : Gold Capitulation
2 Dave N : Mandatory rebound to at least Gold 1610 Imminent
3 T D S: We’re Headed Dramatically Higher; To Levels Few Can Even Consider
4 Jeb H : Keep Your Head When Investing In Precious Metals
5 B M : Capitulation
6 M H : Gold Bear Trap Is Sprung
7 Gold and Silver Worlds :Gold & Silver Prices Drop Into Severely Oversold Area
8 CEO Technician :Huge Buying Opportunity Setting Up in Gold
9 (Deleted) : Time to Buy Precious Metals Now
10 W Y : Carving a Reversed Head and Shoulders Instead
11 J N :A Golden Opportunity With Miners
12 Ch V : Gold & Silver Nearing MAJOR Long-Term Support
13 T C : Major Top In Stocks & Major Bottom In Gold
14 D L :The Current Currency Crisis will Ultimately
Lead to Higher Gold Prices
15 P R :”Summing up, support lines are in play for two out of three of this article’s gold charts and it’s likely that a local bottom has indeed formed. Additionally, RSI levels indicate an oversold situation. The outlook for gold from here is bullish”

As a Staunch Permagoldbug of some 20 years…I have seen the lean times (pre 2001) (2008) and the Fast Times (Gold 1900)…and I really really hope and pray these esteemed Gold Analysts are right !
Many of them however have been calling for a Bottom for quite some time
They cite : Extremes in Bearish Sentiment , Extremes in Commitment of Traders , Extremes in Momentum Indicators , Extremes in Fundamentals , Fractals , Cycles , Elliot Waves and a host of other reasons that I desperately want to believe !
However there is that one lonely nagging voice in the wilderness calling…”Its all in the Chartology”

And this time I am not going to shoot that messanger as I did in 2008 !

Rambus always tells his subscribers :
The only Rule in the PM Markets is “There are No Rules”
So anything is possible
Perhaps this will turn out to be a Bear Trap
If So , I know that Rambus (Dave from the Ozark Mountains in Arkansas)
will be able to spot it in the Charts and turn on a dime and go long
But For Now…The Charts are Shouting “Breakdown in the Precious Metals Stocks !”
And We Better believe what we see !

HERE IS HOW THE HUI WENT AFTER THAT TOO BIG TO FAIL POST WAS MADE…

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Now The Last Word from tour Self Taught Chartology Professor :

Before we move on to the subscribers questions at the forum lets take a moment and talk about a game plan going forward. Right now we find ourselves in a very unique situation in regards to the precious metals complex. There are a few times in an investor’s life where the big picture shows itself so clearly. My experience has taught me that when I see such a setup, that is this rare, the best course of action is to sit tight and don’t attempt to trade the small swings. As some of you are finding out, that have sold their 3 X etf’s, thinking gold or the precious metals stocks can’t go any lower and are ready for a bounce, may find it hard to get back in. Yes you took a nice little profit but you lost sight of the big picture. The big picture is where the big money is going to be made. Chances are if you want to get back in you will be finding yourself chasing the price action hoping and waiting for a counter trend rally that may or may not happen. Positioning is everything in the markets.

We are lucky to be in the position we find ourselves in right now. We have alot of wiggle room if there is a short covering rally that will knock your socks off. Everyone who has been calling a bottom over the last year or so will be telling you the bottoms in and the bull market is taking off again. My view is that when we do finally get a short covering rally, that will look like the bull market is stating anew, that would be the time to sell any reaming precious metals stocks you own and to use any strength to add to your Kamikaze trades or short positions.

I’m still amazed how many investors can ride a losing position down day after day but when they have a winning position they will sell out at the drop of a hat. The old wall street adage: Cut our looses and let you profits ride, easier said than done but very important concept to grasp.

I have shown you countless H&S top patterns that are just beginning to breakdown especially in the big cap sector. I’m showing you these big multi year H&S patterns to give you an idea that this decline isn’t going to be a one day wonder. Its going to take many months or longer for these big tops to play out. I can guarantee you that the volatility is going to be insane at times and your emotions will get the better of you. I have said this before, this will be the easiest and the hardest time you will have holding on to your short positions. The easiest because you don’t have to do anything except sell when we approach the bottom. The hardest because your emotions will get in the way when you read something someone wrote that say the PM stocks can’t go any lower because of this indicator or that the PM stocks haven’t been this oversold in history or what ever the reason is and you will bail to relieve the pressure.

Please keep in mind this isn’t a child’s game we are playing. When you put your hard earned money into the markets you are going up against the brightest minds and best trading systems in the world. They want your money and they could care less what excuse you give when you hand over your hard earned capital to them. You can use the excuse the markets are manipulated is why you lost or countless other excuse for not succeeding. They don’t care, they just want your money. Period!!!!!! One has to take responsibility for their success and failures and not do the blame game as that is counter productive. With that said lets move on to some subscriber questions.

All the Best
Rambus

EDITOR’S NOTE : CLICK THE BACK BUTTON TO GO BACK TO GOLDTENT AND FINISH READING THIS POST

We haven’t looked at the US Dollar in awhile so lets see what it’s been up to in the last month or so. The first chart I would like to show you is a weekly bar chart of the H&S top pattern that everybody is focused in on at the moment. It does have nice symmetry to it and looks like the real deal. Please note the blue 5 point triangle on the right side of the chart where the current price action is strongly testing the top blue rail.  As I have shown you many times an odd number of reversal points in a chart pattern equals a reversal pattern. As this triangle is forming below the H&S top we need to see a pattern that has at least 5 reversal points to reverse the downtrend to up. A breakout above the top blue rail will give us our first big clue that the potential H&S top will fail. As you can see the blue triangle on the left side of the head has 6 reversal point making it a consolidation pattern.

In order to launch a decent bull move a stock has to have a base that gives the stock the energy it needs to make a sustained move. This next 5 year daily chart shows the US Dollar does have a nice big base in which to launch a decent upward move.  Some of our earlier subscribers may remember this inverse H&S bottom that we watched develop for sometime last year. As you can see the breakout from the H&S bottom was anything but a rocket launch as the price action has been moving sideways to slightly down. Another simple clue that a bottom could be in is that the dollar has not made a lower low since the backtest to the neckline. A simple clue but an important clue up to this point. Again you can see the price action is strongly testing the top rail of the red triangle.

Below is another way we can look at the price action from the Dollar high made back in July of last year. Some of you may recall the blue morphing triangle on the left side of the chart that broke out to the upside after a false breakout to the downside at point #6. We have a similar morphing triangle on the right side of the chart. If we start the triangle from the July top then it only needs to have an even number of reversal point to make it a consolidation pattern. I have to admit its not the prettiest triangle I’ve ever seen but the way the breakout and backtest is progressing it could very well be completing the breakout phase. We will know very soon if this is the case as the top blue rail will have to reverse it’s role and act as support on any pull back. Note the gold chart at the bottom. If the dollar does in fact breaks out of the 6 point triangle to the upside that will put alot of pressure on gold.

Below is another combo chart that shows the smaller red 5 point triangle reversal pattern on the dollar and the big H&S top pattern on gold on the lower chart. What I find interesting is the last bar on the chart for both the dollar and gold. As you can see the dollar is attempting to breakout from the red triangle and gold broke below it’s big neckline last week. Coincidence?

Lets look at another combo chart for the dollar and gold that goes all the way back to 2003. The US Dollar chart on the bottom is giving a buy signal based on the 20 and 50 week ema’s. As you can see in the red circle, the faster 20 week ema has just crossed over the slower 50 week ema and the price of the US Dollar is above both moving averages at 80.58. You can also see the big long black dashed support and resistance rail that goes all the way back to 2004. That is critical resistance right now but if the dollar ever trades above that S&R rail that will be a very big deal IMHO. As you can see on the top chart gold is in a confirmed rectangle and if the dollar breaks higher that would put serious pressure on gold. Right now it looks like 86 for the dollar is resistance and 1530 is support for gold.

Lets look at one more combo chart for the US dollar and gold. On the chart below I’ve add a brown shaded area and a blue shaded area based on the two red triangles on the dollar chart on top. What this chart shows is the inverse move that the dollar.and gold tend to make. You can see that when the red triangle on the left side was building out gold moved up to point #4 on it’s rectangle and when the dollar finally broke out to the upside gold corrected down to point #5 at the bottom of the rectangle. This is where it gets interesting. Note the red triangle on the right side of the dollar chart that is getting real close to breaking the top rail. If the US dollar breaks out above the red rail that will put serious pressure on gold that will break the bottom red rail of it’s small downtrend channel. And if the dollar has a strong move up the blue bottom rail of gold’s big rectangle will be in jeopardy which would be a serious blow to gold if the bottom blue rail ever gives way. A break of gold’s bottom blue rail of it’s rectangle would then turn from support to resistance on any backtest. So we have plenty to watch over the next week or so. Stay tuned…All the best…Rambus

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