Looking Back 5 Week Moving Average

Previous tests of the 50-week moving average have preceded significant rallies over the past year. Two consecutive weekly closes above the 5-week moving average constitute “confirmation” of a new upleg in the gold bull market… silver tends to exaggerate the trends in gold and… a tentative buying level is beginning to be described.After bouncing decisively off the long-watched support at the 50-week moving average last Friday, the holiday-shortened week began with a move back above the 5-week moving average and ultimately closed there, a key level for the health of the current short term trend. Though it proved to be somewhat of a seesaw week, with gold retreating back to the 5-week average on Tuesday and breaking through on Thursday, the proprietary trend cycle charts gave us a buy reading Friday morning for a rally that took gold to a bullish weekly close. Recall that two weekly closes above the 5-week moving average is an extremely bullish trend signal. July 8,2007