Moving the goal posts can be a dangerous endeavor in various fields such as health, education, law and business, states Ashraf Laidi of

In technical analysis, trendlines are defined as identifying the general direction of a chart by connecting the shortest distance between the most proximate lows/highs. The more points, the more relevant the trendline. But where do you draw the line between trendlines and trends? 

Trend vs Trendline: Gold, DXY, Yields - Gold Dxy Yields Jun 22 2023 (Chart 1)

The chart above highlights the generally sensible relationship between rising trendline in gold and falling trendline in USD Index as well as US yields. “Ashraf, did you say rising trendline in gold? Ive been long gold and lost money”. Yes, so am I and so have I. Short-term traders long gold are suffering the 5% decline in bullion from start of the year, as well as the intensifying selloff of the past four days. -5% YTD is bad, while -7% from the year highs is worse.

The opposite holds true for ten-year yields, which have jumped 16% from their March lows, but are 1% down YTD. Gold traders have their eyes fixated on the 3.83/4% level, which is not only the year's open but also the top of the trendline resistance. Any print above 3.90% would trigger an ugly cascade of sell orders across metals and indices (especially Tech). 

How is this all relevant to those with longs in metals? Gold can remain in its own (primary) uptrend as long as it holds 1810/20. This requires support from silver upholding 21.80/90 and copper doing the same at 7880. Our intermetals frameworks also examines platinum and real yields. While this can be a dangerous example of shifting the goal posts and redefining boundaries, it remains consistent with capturing the general trend, which is what classic technical analysis is about. 

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