Gold looks like its ready for a decline here. There is a bearish divergence between gold stocks and the commodity , typically stocks lead the commodity. The gold stocks ala index HUI are giving us an early warning signal with a break in the uptrend line on April 11th and a series of lower highs and lower lows after the break of uptrend.
See picture below, you can see that in the past several months gold stocks gave an early warning signal by breaking prior uptrend lines before a decline in gold the commodity. The top pane is the HUI index which tracks gold stocks and the bottom pane is gold futures prices. If you don’t trade futures GLD is an ETF that tracks the commodity.
The performance report below is based on shorting 1 contract of gold on the 96th TDOY and covering in 60 trade days , since 1975.
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