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Monday, 28 May 2012

Update on Gold Delta Solution

Back in February I published a post about the Delta solution for Gold, and this post is a follow up to that earlier post.

Below is an updated chart of Gold showing the next few turning points following on from where the previous chart ended.

My read of this chart is that MTD 1 (solid green line) is a high which came in early March, followed by a low MTD 2 which came in a week late (the second solid red line). The market then struggled to move up to a high MTD 3, indicating a very weak market, and now the market is moving down to a low MTD 4 (the second solid yellow line). Since the most recent MTD 3 high is lower than the previous MTD 1 high and it looks like the MTD 4 low will come in lower that the MTD 2 low, I'd say that on the MTD time frame Gold is now a bear market.

On an unrelated note, it has been more than a month since my last post. During this time I have been busy working through the free, online version of Andrew Ng's Machine Learning course. More on this in a future post.