AMGO, Amigo loans correction prediction pricebased on reverse RSI method the selloff should stop near 8.3 level
Reversersi
Time to buy the gold miners bear ETF?Usually gold and the dollar move opposite directions, but both XAUUSD and DXY are up since late June. The dollar index is holding above its upward trend line and poised to possibly bounce higher in the coming week.
Meanwhile, gold is in overbought territory on the RSI and making bearish divergences.
Usually, gold outpaces the dollar, and miners outpace gold, and the 3x leveraged miners ETFs outpace them all. So if you want to maximize your gains from volatility in this commodity, the 3x miners ETFs are the way to go. Lo and behold, the reverse RSI indicator is flashing a buy signal to day for DUST, the Gold Miners Bear 3x ETF. Besides which, look at that volume! That volume is huge. It sure looks like big money is positioning itself to short gold.
Some technicals to look for when choosing an entry point: 1) XAUUSD should close inside the reverse RSI channel. 2) XAUUSD should close below the Hull moving average. 3) XAUUSD should close below the critical 1500 support level. 4) DXY should hold above its upward trend line.
I should underscore that this is a risky play. I find that gold is one of the least predictable commodities. Buying volume on the bull side is still pretty strong. Gold is higher against the dollar than it's been in three years, but its well below its highs from 2011-2014. The dollar's MACD is below its signal line and its RSI is below its upward trend line, so we could easily see the dollar return to weakness and another upward surge in gold.
