Apple Breaks Out, Gold Breaks Below Support
By Global Macro Monitor
A quick update to our recent posts on Apple and gold. Apple has broken out of its bullish pennant formation and looks poised to take out the July 26th all time high of $404.50. This is a chip shot from current levels and could happen with a one day move.
On the other side, gold broke support at 1,793 and now looks ready to test the 1,750 level. We noted the 1,700 level is major support and also the 50% retracement of the parabolic move which began in July. This, we said, is where “the river meets the waterfall” and where a correction could really accelerate. Longer term we like gold as the major central banks remain accommodative, but the trade is super crowded and it needs some time to consolidate and shake out the weak hands. Always note our posts are not recommendations and, at best, our best guesses. Nothing more.