With FEB Gold extending its decline which began in the first week of December, could it be that the yellow metal is ready to enter a full-blown bear trend? The outside day in the Dollar on the last trading day of 2004 has turned the first trading day of the new year into a dollar-buying spree. Alas, we've seen these one-day wonder rallies before and it's way too early to call an end to the bearish trend in the greenback. All one has to do is look at a daily chart of the US Dollar Index to realize that these brief, unsustainable rallies have been tremendous selling opportunities and nothing else. So, for all you diehard Trend Followers, remember this: The trend is your friend until the trend reaches the end. It's unlikely that the major trend in Gold or the Dollar are at a turning point. Be patient and let the market tell you its intentions.
Dale F. Doelling
Chief Market Technician
Trends In Commodities
No comments:
Post a Comment