Gold: Back to the Yellow Version

Gold and Crude Oil have been important indicators in the market. They can be also very volatile with the unrest in the world and the differing view of the economic climate regarding growth and inflation. But a weekly ratio chart of the SPDR Gold Trust Shares (ticker: $GLD) against the United States Oil Fund (ticker: $USO) shows it has been a fairly tight channel for over 1 year.

The ratio is once again at the top of the channel and ascending triangle near 3.83 with volume increasing the last 4 weeks. Early Monday morning Gold is higher and Crude Oil is lower prepping for a test of the top rail. If can get through that rail then the target for a channel break would be a move to a ratio 4.47. Watch for a breakout or a hold at the rail to determine which side of this ratio to be long.

(As always you can see details of individual charts and more on my StockTwits feed and on chartly.)

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