{"id":26535,"date":"2023-07-12T08:44:12","date_gmt":"2023-07-12T11:44:12","guid":{"rendered":"https:\/\/tiproject.online\/index.php\/2023\/07\/12\/usds-decline-thats-bearish-for-gold\/"},"modified":"2023-07-12T08:44:12","modified_gmt":"2023-07-12T11:44:12","slug":"usds-decline-thats-bearish-for-gold","status":"publish","type":"post","link":"https:\/\/tiproject.online\/index.php\/2023\/07\/12\/usds-decline-thats-bearish-for-gold\/","title":{"rendered":"USD\u2019s Decline That\u2019s\u2026 Bearish for Gold?!"},"content":{"rendered":"

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Things are very exciting on the USD Index front. Yes, it\u2019s declining, and yes, it\u2019s excitingly\u2026 Bullish.<\/p>\n

I realize that for many market participants, a move higher will always be bullish, and a move lower will always be bearish, and I will still emphasize it once again. Bullish and bearish are words that refer to the future, whereas a rally or a decline are events that already happened.<\/p>\n<\/div>\n<\/div>\n

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This is not<\/strong> the same thing.<\/p>\n

A rally can be bearish; or it can be bullish.<\/p>\n

A decline can be bearish; or it can be bullish.<\/p>\n

It\u2019s the context, bigger trends, and other factors that really determine the outlook, not what happened very recently.<\/p>\n

So, what is supposedly making the current move lower in the USD Index so excitingly bullish?<\/p>\n

The Facts<\/h2>\n<\/div>\n<\/div>\n
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And the fact is that whenever the USD Index moved to or below the 101 level this year, it then rallied back up \u2013 often in a sharp and profound manner.<\/p>\n

That\u2019s what\u2019s happening right now, and given this kind of analogy, the implications are really bullish.<\/strong><\/p>\n

And as they are bullish for the USD Index, they are bearish for the gold and silver prices<\/a>.<\/p>\n<\/div>\n<\/div>\n

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Besides, please note that the gold price<\/a> just managed to move slightly above its previous July high, while the USDX moved below its June lows. If gold was to move above its June high, it would have to soar above $2,000. It\u2019s nowhere close to those levels, so its underperformance \u2013 and refusal to follow USDX\u2019s bullish indications \u2013 is clear.<\/p>\n

This implies that it\u2019s very unlikely that gold<\/a>\u2019s short-term breakout above the declining resistance line will hold.<\/p>\n<\/div>\n<\/div>\n

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Anticipated Reversal<\/h2>\n

What is much more likely is that it will be followed by a sizable decline, just like what we saw in June (please note that dashed line) when we saw something analogous.<\/p>\n

The same with GDXJ<\/a>.<\/p>\n<\/div>\n<\/div>\n

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It moved just a little above the declining resistance line, and the breakout was not confirmed. Will it be confirmed? Given the above and given how weak mining stocks have been relative to gold and to stocks in the previous weeks, it\u2019s very doubtful.<\/p>\n

A reversal and a move to the previous 2023 lows (and then below them) is a much more likely outcome. This creates great trading opportunities, not only in mining stocks but also in other markets.<\/p>\n

Remember, a rally doesn\u2019t have to be bullish, and a decline doesn\u2019t have to be bearish. In fact, tops can only form after rallies, and bottoms can only form after declines. Please keep that in mind the next time when you \u201cfeel\u201d the urge to follow the current sentiment just because it \u201cfeels\u201d like a good idea. It\u2019s best to analyze the situation first and only then take action \u2013 skipping this step tends to be costly.<\/p>\n<\/div>\n<\/div>\n

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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

[ad_1] Things are very exciting on the USD Index front. Yes, it\u2019s declining, and yes, it\u2019s excitingly\u2026 Bullish. I realize that for many market participants, a move higher will always be bullish, and a move lower will always be bearish, and I will still emphasize it once again. Bullish and bearish are words that refer to the future, whereas a rally or a decline are events that already happened. This is not the same thing. A rally can be bearish; or it can be bullish. A decline can be bearish; or it can be bullish. It\u2019s the context, bigger trends, and other factors that really determine the outlook, not what happened very recently. So, what is supposedly making the current move lower in the USD Index so excitingly bullish? The Facts And the fact is that whenever the USD Index moved to or below the 101 level this year, it then rallied back up \u2013 often in a sharp and profound manner. That\u2019s what\u2019s happening right now, and given this kind of analogy, the implications are really bullish. And as they are bullish for the USD Index, they are bearish for the gold and silver prices. Besides, please note that the gold price just managed to move slightly above its previous July high, while the USDX moved below its June lows. If gold was to move above its June high, it would have to soar above $2,000. It\u2019s nowhere close to those levels, so its underperformance \u2013 and refusal to follow USDX\u2019s bullish indications \u2013 is clear. This implies that it\u2019s very unlikely that gold\u2019s short-term breakout above the declining resistance line will hold. Anticipated Reversal What is much more likely is that it will be followed by a sizable decline, just like what we saw in June (please note that dashed line) when we saw something analogous. The same with GDXJ. It moved just a little above the declining resistance line, and the breakout was not confirmed. Will it be confirmed? Given the above and given how weak mining stocks have been relative to gold and to stocks in the previous weeks, it\u2019s very doubtful. A reversal and a move to the previous 2023 lows (and then below them) is a much more likely outcome. This creates great trading opportunities, not only in mining stocks but also in other markets. Remember, a rally doesn\u2019t have to be bullish, and a decline doesn\u2019t have to be bearish. In fact, tops can only form after rallies, and bottoms can only form after declines. Please keep that in mind the next time when you \u201cfeel\u201d the urge to follow the current sentiment just because it \u201cfeels\u201d like a good idea. It\u2019s best to analyze the situation first and only then take action \u2013 skipping this step tends to be costly. [ad_2] Source link<\/p>\n","protected":false},"author":1,"featured_media":26536,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[45],"tags":[],"class_list":["post-26535","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financas"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/posts\/26535","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/comments?post=26535"}],"version-history":[{"count":0,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/posts\/26535\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/media\/26536"}],"wp:attachment":[{"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/media?parent=26535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/categories?post=26535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/tags?post=26535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}