XAU - Precious Metals ..Thunderbirds are go...?

XAU appears to be breaking out of its flag. This is supported by GDX which has already broken out of its flag and has bounced off it (resistance now support). DXY's weakness continues. XAG is also breaking out of its penant (as per my previous posts). On the technical's, if conservative will want to see XAU closing above 1800, from an aggressive stance can go long/add to longs now. The flag formations on XAU and GDX imply a move back to the old highs at least and potential for the 2,400/2,500 range on XAU - GDXJ is lagging as expected and is still in its flag but this is expected at this stage as the institutional money buys the large caps first, the small caps will follow...and then accelerate past if we are in a genuine bull market, so GDXJ is the preferred tool for diversified equity exposure including large and small caps (but more volatile!). Must still be cognisant of risk, so need to keep an eye on reversals..

Trade active:

Very long. Now off to play golf - do not trade this market, let it do its thing - we should be heading to the 2,400 over time - we will see if/how we get there, but given the cup and handle pattern and my charts on precious metals stocks v SPY and QQQ, we appear to be at the beginning of what should be a major move which may last a couple of years...or so... Downside risk is clear on the charts - we do not want to see a re-entry to the flag - if we do then we need to put the clubs away and pay attention. As we move higher then we will start at looking how to raise stops.