Mirror Image of the XAU Index
1.The Chart below looks at the XAU Gold and Silver index in a “mirror”
2. Sometimes looking at a chart , with the “opposite view” ,can clarify the chart, and support a bullish view by cleaning up the chart
“A top is a bottom and a bottom is a top”
3. In this chart, when the XAU is moving down it is rising, or going Higher. When the Index is rising, the XAU gold shares are moving down, as a group.
4. This chart suggests we have been in a bull market since January 2016, with a lot of volatility along the way
5. We see a similar consolidation “now”, to the one in the middle of the 10 year 2001-2011 run
With growing fundamentals, record cash flows, rising dividends, mergers of strength, suggest the XAU index and precious metal shares could break out to the downside, (GO Higher) over time.
6. exploration companies filling the exploration gap by majors and successful ones filling
Was the covid move lower in 2020 this decade’s 2008 ??
Happy Trading, John Newell