Technical observations of RossClark@shaw.ca
Now that the US Dollar has made an upside reversal from its weekly capitulation reading we should be looking forward to a rally back to the 20-week exponential moving average before the next round of sustained weakness. While we could thrash around at the lower levels for a week or two, the action of the past twenty years indicates that it would be normal to expect to take five to eight weeks to reach the average. This provides a time window of December 28th through January 18th.
The first week in which the Dollar closes above the average has been an optimum point to move to an overweight position in gold bullion.
CHARTWORKS - DECEMBER 4, 2007
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