Monday, 4 June 2012

GOLD.AX gold priced in Australian dollars resumes bull market

I wrote on the weekend that GOLD.AX would gap through the daily chart trend line upon commencement of trading this week, and what a spectacular gap it was.

The monthly candlestick chart indicates that the bull market is live so long as this market remains above the rising trend line ie. above the May low @ 149.5.

ASX 200 closes under the trend line drawn from the 2009 and 2011 lows

A Friday close below the line would seal the deal. One step at a time.

Weekly candlestick chart showing that trend line.

Monthly candlestick chart showing the big picture. Why do I repeatedly post this chart? It's all to do with sitting, Livermore style.

DAX does this look like a market that is anywhere near a lasting bottom?

Does the German DAX look like it is anywhere near a lasting bottom?

If your answer is no, then how much chance is there that other stock indexes have bottomed?

If your answer is yes, then please explain.

Weekly candlestick chart.

Daily candlestick chart.

BHP's big double top

This is old news, but important to know, given how large a component BHP is of the ASX 200 and of most Australian adult's superannuation. I have referred to this double top over at MB several times in the past year or so, but only today realised I have never posted a chart of it.

BHP double topped at its 2008 and 2011 highs, which is a bearish set up. The measured target for the double top is single digits (< $10), and would be confirmed by a move below the November 2008 low at $20.