Dollar and gold test key support levels
By Colin Twiggs
April 26th, 2012 4:00 a.m. ET (6:00 p:m AET)
The Dollar Index continues to struggle with resistance at 80. Reversal below 78 would signal the end of the primary up-trend and a re-test of the 2011 low. Reversal of 63-day Twiggs Momentum below zero would strengthen the warning, while respect would indicate another primary advance.
* Target calculation: 82 + ( 82 - 78 ) = 86
Spot Gold failed to respond to the listless dollar, testing the long-term trendline and support at $1600/ounce. 63-Day Twiggs Momentum oscillating around the zero line indicates indecision. Recovery above $1700 would indicate a fresh primary advance, while failure of $1600 would warn of a primary down-trend — with a long-term target of $1200*.
* Target calculation: 1800 + ( 1800 - 1600 ) = 2000; 1500 - ( 1800 - 1500 ) = 1200
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