U.S. Dollar Index Set for a Big Drop, Gold/Silver Heading Higher

Η μπάλα στη κατοχή των ..Bears
September 29, 2017
Μεγάλη ποικιλία και πάλι….
October 2, 2017

Note from Alexandros Yfantis Trading2day.com Chief Editor:

It is not customary in our competing financial field to see a website promote its own ‘competitors’….here in Trading2day we are different and do not see Adam Kobeissi and his analysis as a competitor, but as an ‘ingredient’ that mixes very well with our website and we believe his work will be of help to most traders out there. I’m happy to publish his first ever post in Trading2day.com and can’t wait for many more to come in the future. Welcome Adam….

 

This week’s Chart of the Week features the United States Dollar Index (DXY) as it has risen off its recent low at 91.01. After collapsing from recent highs near 104, DXY appears to have broken above its downtrend line. However, in this case it appears that this break out is a “head fake” and DXY is ready to make another major move lower to 88-89. Once DXY breaks below 92.90, we are looking for a move down to 92.07 which was a recent level of support as indicated in the chart above. We then see 92.07 being broken and a test of the recent low at 91.01 as the final check point before our 88-89 target. The other tool we are using this week is a price oscillator (PO) which is suggesting that this bounce is a “head fake.” We recently saw the PO cross above 0 and this is something that we saw multiple times this year. However, every time that the PO crossed above 0 this year (six times), DXY reversed after experiencing a bounce. The same setup appears to be the case for the most recent bounce in DXY and the index is preparing for its next major move lower which should begin this week. The PO should be heading back to its lows near -0.8 before a bottoming of DXY.

What this means for metals is great news and gold/silver should be heading much higher very soon.

Farewell and Trade well,

Adam Kobeissi

The Kobeissi Letter Editor-in-Chief

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  • Kenny Cheung

    His previous article suggested a low with gold on September 21st. It did go up; however, only to reverse and broke the September 21st low. So, this is not really that good of an analysis. Just another lame analyst like every one else on the INTERNET. Nothing to show for.

    • trading2day

      Kenny you are being unfair in your judgement….first of all Adam’s view regarding Gold is for the next 3 months. So a break to new short-term lows is not something that changes a medium-term strategy. It is not a matter of INTERNET ANALYSTS or not, even if his view about Gold does not come true, this does not decrease one’s quality. Do you know any analyst that is always correct….in the end, what matters the most is HOW you are going to trade any piece of analysis. A longer-term bullish view in Gold will not change ones view if gold breaks short-term lows. Position and risk management are equally important with the main idea behind an analysis. What good would it do, if my view for Gold is correct, but being over leveraged makes me exit early due to increase in volatility and sharp fluctuations in Gold price?

      Constructive judgement in order to get better and provide better services is always sought after…your arguments unfortunately do not hold in this case for the reasons mentioned above. An analyst/trader can be judged only if you follow him/her for at least a year and of course not only by one call….and only after a cooperation with him in person.