Courtesy of Doug Short.
I understand if you are thinking “NO WAY” after reading the title of this post. Odds do seem very low that this could happen. So why say such a thing? The chart below covers a 30-year time frame for both the Swiss Franc and Gold.
When the Swiss Franc has hit resistance line (1), gold has traded flat to down for years to come. How interesting that multi-year resistance is coming into play for both of these at the same time that GLD has become the largest ETF in America. Crowded trade?
Not only are the Franc and Gold up against long-term resistance lines, but also both have created bearish rising wedges. The message of these key resistance lines? Consider harvesting some gold positions or putting a stop to protect the values in the metals holdings right now.
No doubt both are above key long-term moving averages, and the trend remains up for both. And if resistance is taken out (which could happen), the world will look a TON different! On the other hand, should support of the rising wedges break to the downside, investors and professionals will want to be proactive in protecting values for themselves and their customers!
(c) Kimble Charting Solutions
blog.kimblechartingsolutions.com
