The Gold Pendulum Swings To Bull
Aug 28, 2012
- We’re only as good as our last trade. Please click here now.
- A week ago, the charts indicated that silver was potentially set to begin a long period of outperformance against gold. That has seemingly started “on cue”.
- Note the black HSR (horizontal support & resistance) line that was created by the lows around .01873 and .01889. Like a wild bull, silver has charged into that price area, on enormous volume.
- Investors should consider booking light profits on trading positions now, while entertaining the view that this is probably only the opening act of the “big silver show”.
- Where should you reload your trading gun with fresh silver bullets? Please click here now. Note the highlighted buying area.
- There is a difference between booking profits and calling a top. Generally speaking, professional investors sell into strength, while amateurs try to call turns.
- Silver is overbought against both gold and the dollar, but it could make more highs during this rally, before correcting.
- Gold is also slightly overbought on the daily chart, but that doesn’t mean it turns down. Please click here now. Gold has rallied about $90 higher, since mid-August.
- Note the black HSR line in the $1675 area. There’s another one at about $1715. We can’t know if gold will decline from here, or rally up towards $1715. Since I’m heavily long gold, obviously I’d prefer the next move to be towards higher prices.
- Please click here now. Gold may be making a short term top, or it could be consolidating between $1660 and $1680, before launching a powerful surge to $1700-$1715.
- The $1647.50 price zone appears to be key support, and I have buy orders there.
- If the price surged to $1715, then I would recommend booking more profits, and placing buy orders in the $1680 area.
- It’s critical that investors carry long term core positions that are never sold, because gold is the ultimate asset. It is wealth itself. That’s a concept that is hard for many people to understand.
- Another key wealth-building concept that is difficult to grasp is the difference between a “buy signal” and a “bullish event”. Please click here now. You are looking at the GDXJ daily chart.
- It could be described as a “technician’s dream”. Price has surged to a new minor trend high, on very good volume.
- I view the rise to $22.37 as the most important technical event to occur in junior gold stocks in almost two years, but that doesn’t make it a “buy signal”.
- Please click here now. If GDXJ rises to $23.38 or higher, the $22.18 area becomes a buy zone for traders.
- If GDXJ rises to the $27.16 area that I’ve highlighted on the chart, and then declines towards $22.18, the area around $22-$23 becomes an enormous buy for long term investors.
- To view the current key buying areas for GDXJ traders, please click here now.
- Note the blue HSR lines highlighted with green circles at about $22.50, $19.83, and $19.09. Those are your points of action, and mine, for buying!
- I’ve noticed a big change in the general morale of the general gold community over the past week. I want to see that vibe “amped”, with a bullish view of the GDXJ chart.
- Most investors have given up on QE3, but I’m holding to my prediction that it occurs in September.
- Volume is the technical lie detector of all major market moves, and it is building on each rally in every precious metals sector.
- Gold is entering the strong season, and Iran-Israel tensions are increasing. Overall, the gold market pendulum is moving quickly and decisively, from bear to bull!
Aug 28, 2012
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