Friday, 1 June 2012

DAX breaks lower - whodathunkit?

Yesterday I said that "a decisive daily chart trend line break could be directly ahead" for the DAX. This evening the DAX has smashed through the trend line drawn from last September's lows. Next hurdle is the bottom down trend channel line that the market is currently testing. If the market breaks lower through that line, the market will likely accelerate downwards. Look at my AUD/USD daily charts for the past month for an example of what can happen when a market breaks through the bottom line of a down trend channel.

The rest of the world will follow.

Gold priced in Aussie dollars is a hairs breadth away from resuming its Bull market

Taking the GOLD ETF traded on the ASX (GOLD.AX) as a proxy for Gold priced in Aussie dollars, first let's look at a long term chart, showing a recent test of the up trend that has supported the bull market since mid 2005.

Zooming in to the daily candlestick chart for the past year shows that GOLD.AX is testing the trend line drawn from the 2011 highs. Given the recent test of the long term up trend line in the first chart, an upwards break through the daily chart trend line would signal a resumption of the larger degree bull market.