Interesting week and it looks like the bears are loosing steam.
(Left chart): We bounced twice off the 2021 trend line and that now confirms 5 points of support for the bulls that this trend line is here to stay. The 2 bounces on the last 2 Wednesdays also adds double bottom pattern, a very bullish signal. We are currently are still testing a resistance of the middle trend line (dashed) as that has been a strong support throughout the year.
Once we do cross that dashed line and close above, we should see a very bullish week and a test towards $428 and possibly $445 next of the overall decade long trend line(Right Chart).
(Right Chart) Some things to look out for though. We are approaching the upper end of the trend channel and throughout time it kept rejecting us back to the middle or bottom end of the trend channel. On the short term we are still bullish since the dollar is weakening and bonds are unattractive, but on the intermediate term to long term though, we should be cautious especially when interest rates are looming and Treasury is pressuring the feds to raise interest rates. (also see my comparison of our current economy today vs Japans 90s Loose Monetary Policy for what happens when interest rates rise on fears of inflation)
(Left chart): We bounced twice off the 2021 trend line and that now confirms 5 points of support for the bulls that this trend line is here to stay. The 2 bounces on the last 2 Wednesdays also adds double bottom pattern, a very bullish signal. We are currently are still testing a resistance of the middle trend line (dashed) as that has been a strong support throughout the year.
Once we do cross that dashed line and close above, we should see a very bullish week and a test towards $428 and possibly $445 next of the overall decade long trend line(Right Chart).
(Right Chart) Some things to look out for though. We are approaching the upper end of the trend channel and throughout time it kept rejecting us back to the middle or bottom end of the trend channel. On the short term we are still bullish since the dollar is weakening and bonds are unattractive, but on the intermediate term to long term though, we should be cautious especially when interest rates are looming and Treasury is pressuring the feds to raise interest rates. (also see my comparison of our current economy today vs Japans 90s Loose Monetary Policy for what happens when interest rates rise on fears of inflation)
