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Russell Gold
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New member Russell Gold is an investment research analyst. Russell Gold fields of interest include technical analysis, macroeconomics, demographics, financial history and energy policy. His published topics include; stock options, dividend investing, technology, services, finance and search... More
  • Stock Chart Technicals For Gold, Silver, Euro, Swiss Franc And US Dollar 3 comments
    Aug 9, 2012 2:55 PM | about stocks: GLD, SLV, FXE, FXF, UUP

    Both the Euro and Swiss Franc have had volatile years since the Lehman crash of 08. Although, as you can see below, the Euro and Swiss Franc have had quite a different ride.

    Euro has carved out two peaks followed by two bottoms. The Euro and Us Dollar have been in an inverse relationship for many years. This relationship is most noticeable in the Euro and US Dollar charts below. Euro is near its two year bottom. The dollar has moved up versus the Euro since May of 2011.

    Euro

    (click to enlarge)Euro - Philadelphia Index

    US Dollar

    (click to enlarge)US Dollar

    PowerShares DB US Dollar Index Fund UUP

    (click to enlarge)Russell Gold UUP chart

    PwerShares UUP is turning negative. The US Dollar reversal that started in May 2011, looks to be coming to an end. It appears UUP has one more technical support before eroding the bullish dollar run.

    Swiss Franc, on the other hand, has followed a similar path as silver.

    Swiss Franc

    (click to enlarge)Swiss Franc - Philadelphia

    Silver

    (click to enlarge)Silver Spot Price

    iShares Silver Trust SLV

    (click to enlarge)Russell Gold SLV 6 Month Chart

    Gold however, has held strong above the $1500 support/confluence. Unlike silver, gold is still near the highs set in 2011. The near future may not sit well for gold, SPDR Gold Trust GLD, and Silver, iShares Silver Trust SLV investors. I have annotated the 6 month GLD chart below. GLD and gold are forming a common pattern in the markets, a descending triangle. Descending triangle's are very bearish. Gold's target is 1300 and GLD may reach new 52 week lows near 120.

    Gold

    (click to enlarge)Gold Spot Price

    SPDR Gold Trust Shares GLD

    (click to enlarge)Russell Gold SPDR Gold GLD

    CurrencyShares Euro and Swiss Franc Trust, FXF and FXE shares, represent a cost-effective investment relative to traditional means of investing in the foreign exchange market. Both three year charts and 6 month charts suggest the Euro and Swiss Franc are near bottoming.

    I also annotated FXF and FXE 6 months charts. Both FXF and FXE charts display a distinct Wolfe Wave pattern. The Wolfe Wave is a basic shape in technical analysis. This natural occurring pattern predicts levels of supply and demand. The overriding factor in identifying the Wolfe Wave pattern is symmetry.

    CurrencyShares Swiss Franc Trust FXF

    (click to enlarge) Three Year CurrencyShares Swiss Franc Trust FXF

    (click to enlarge)Russell Gold 6 month chart FXF

    CurrencyShares Euro Trust FXE

    (click to enlarge)FXE

    (click to enlarge)Russell Gold FXE 6 month chart

    The charts are suggesting gold and silver are headed for lower lows. Currency ETN's other than the US Dollar, are very bullish. Invest wisely, we are most certainly headed in volatile territory for the remainder of the year.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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Comments (3)
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  • flimflambam
    , contributor
    Comments (2) | Send Message
     
    Bullish Wolfe Wave looks very interesting. I'll have to look into that pattern, new to me.
    26 Jul 2012, 05:20 PM Reply Like
  • scottjrupert
    , contributor
    Comment (1) | Send Message
     
    Interesting charts Russell Gold
    31 Jul 2012, 09:25 AM Reply Like
  • Russell Gold
    , contributor
    Comments (250) | Send Message
     
    Author’s reply » Bullish Wolfe Wave has been a common theme in these currency trades.
    31 Jul 2012, 09:46 AM Reply Like
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