Friday May 30th – The Bulls Are In Control
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SPX – Yesterday I said that I believe that we have the dcl at day 33 due to the action in many stocks that I follow. The General Markets are back up at the highs though, and things may get choppy around here, since former highs are often where sellers can be found. It becomes temporary resistance, so we may get a little choppy, but this should only be day 4 on Friday (today).
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THE USD could have a dcl in place here at day 25. On Thursday the USD gapped up and sold off and Gold gapped down and rallied higher, so it is starting to look like that inverse relationship is coming back into play. If a dcl formed on day 25, it does indicate that an ICL formed with that sharp drop from March into April.
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Same chart: If a dcl formed on day 25, it does indicate that an ICL formed with that sharp drop from March into April, because that day 25 low is a higher low. This obviously makes me wonder how Gold & Silver will act. It is possible that the USD does what Oil did, and that would be mostly chopping sideways in the first 2 daily cycles and then dropping as Gold runs higher. We’ll see, because Gold and Silver are shaping up Bullishly too.
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GOLD dropped and then reversed to green on Thursday, and it is close to that downtrend line. Silver and the Miners already broke above their downtrend lines, so it may just be a matter of time before Gold does too. This looks like a bullish set up with a possible a-b-c down into a triangle. Triangles can from dcls, but also an ICL. Also Silver looks to have an ICL, so the idea gains more likelihood with that set up …
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SILVER dropped and reversed too. So the sharp sell off into April 7 looks like an ICL. I have pointed out that Platinum looked just like this and then it took off higher, so we want to keep that in mind and plan accordingly. I’m going to show you that again below.
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Just scroll up and down between the next 2 charts and you’ll see that they (Platinum & Silver) are very similar following that crash in April. The charts look like twins.
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PLATINUM: And this is what Platinum did when it broke from that pattern, so I want to point this out to prepare us for the possibility that Silver could Pop too. PLG and SBSW were rewarded when Platinum took off higher.
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GDX has broken above that downtrend line, and this is a bullish set up. This is day 10.
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So today is Friday, the last trading day of the week. Things can get Choppy with the markets at the highs and also as we watch the USD trying to bottom while Gold and Silver bounce out of their recent lows, but the charts and set ups are still longer term Bullish. Bitcoin is due for a dip too, but the charts remain longer term bullish there too, so basically we just say that the bulls are still in control as we head into the weekend. Enjoy your Friday trading and your upcoming weekend!
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~ALEX
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BITCOIN YESTERDAY – This is what I pointed out Yesterday. We were on day 52 and Bitcoin reversed higher as though it would bounce again. I stated that a bounce should be small, because we are due to dip into the day 60 timeframe, so I drew it as a small bounce and then a drop. I said…
The dip to a dcl can be mild and come in around day 55 or so, or it can come as drawn here around day 60 or 62, etc. Its very reliable, but not an exact number, so basically we’re saying that Bitcoin can dip at any time.
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BITCOIN actually sold down that very day, so now we had a day 52 drop lower and this is Bitcoin day 53 live this morning. It now looks like the dip has started and to be honest, that low can form on day 56 or day 60, or day 62, so that means…
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To be honest, that low can form on day 56 or day 60, or day 62, so that means that this weekend as Bitcoin trades into day 54 Saturday and 55 Sundy, Mondy will be day 56 and a low could come in anytime around this time period. THIS IS JUST A VISUAL IDEA OF WHAT I AM THINKING OF. THIS IS NOT MEANT TO BE AN EXACT PREDICTION. I put Bitcoin at $100,000 because the 50sma will be there soon.
