Gold Followed Through With Breakout

• The continuation reverse H-S-H breakout
• Broke through longer term down trend line as well
• Take note of the bullish divergence in the MACD histogram - this is an excellent way to peer at the internal strength (or weakness)
• The preliminary price target for the H-S-H breakout is around $120 - which  aligns with a retest of the previous high ... 

• Volume was above average, i.e., above the 5 EMA
• ADX line is below the +DI and -DI lines and turning up. Keep an eye on ADX slope and when it starts crossing the +DI and -DI lines.

Bulls Look Tired - Bearish Divergence for SPY

Be on the look out for a potential head and shoulders top forming.

Gazing Into the Ichimoku Cloud

Reference: Ichimoku Cloud

On the daily chart, Gold has cleared the cloud. Wait for Turning (blue) line to cross the Standard (red) line for an entry position.

On the weekly chart, the forecast calls for clear skies ahead.

The same goes for $XAU. Finally, let's take a look at the good old $USD:

On the daily chart, the $USD still looks bullish.

On the longer term weekly chart, the $USD is running into resistance, but is making a valiant effort to break through the cloud. US Treasury Bonds are forecasting that the $USD rally is not done yet.

It'll be interesting because of the inverse relationship between bonds and commodities. If bonds plummet then expect this to fuel another leg in commodities. Conversely, if bond prices go down, then yields go up, which is bullish for the $USD. Historically, bonds lead the overall market by 6 months. If bonds start going down, expect the markets to follow about 6 months later.

Notice how the commodity index, which is dominated by Oil, has quietly emerged from the cloud.

Bullish Renko Signal For Gold and Miners

Physics 101

The daily chart is saying that the USD is ripe ... Let's take a look at the big picture(s)

Compare this to Silver:

Finally, let's take another look at the Grand Prize Winner ...

Newton's First Law of Motion: "An object that is in motion will not change its velocity until an unbalanced force acts upon it".

Gold Headed to Retest Highs

If Gold follows through next week, expect Gold to quickly retest the old highs at 1226. We should know by early next week based on which path. Keep an eye on the $USD:

The $USD has retraced 50%. It should be primed to resume its downtrend ...

Gold Fibonacci Analysis

• This chart us showing Fibonacci retracement levels, fans, arcs, and timezones.
• Gold broke above the 61.8% Fibonacci fan line
• Gold has just crossed over the 61.8% Fibonacci arc and is approaching the next timezone.

Based on Fibonacci, it looks like we are nearing the end of this consolidation phase.