Yes, Gold is jumping, but we’ve seen that before, right? The question is , ” Will it make it to it’s intended target, or land flat and flounder around like a (gold) Fish out of water?” Here at Chartfreak, we have been waiting for this next leg higher. Lets review some of the charts from recent premium reports…
GOLD SEPT 22 – Looks great on day 7. The first run up went from $1072 to $1169. It could pull back even further and still look very Bullish, but it doesn’t have to. We are in our second daily cycle and I expect that Gold could run to at least $1200. We will monitor it along the way.
Silver – pretty big 1 day drop, but it has not moved down with Gold on the last 2 days, so it is not a broken chart by any means. Notice similar 1 day drops in July and August that had no follow through. I wanted to see those moving averages hold, and I am also watching the trend lines drawn.
GDX – Yes, GDX fell more than I expected. I was looking for the 10 SMA to possibly hold as support. The chart is not broken and I’ll show you why…
GDX (2)– Looking back at last Nov-Dec when we were dropping into a 2nd daily cycle (RED ARROW) . We took off and curled back down to the lows again ( 2nd red arrow) before a nice blast off higher into January. We could be seeing that here, thats why I say the chart is not broken.
Some were not happy with the action in GDX (understandably) , so As a reminder , I posted this in last nights premium report.
Here is a close up of that period last Dec 2014. GDXJ popped and dropped to shake out weak hands. This looked exactly like what we were seeing now. Compare these 2 charts below together. The 1st is last Dec and the 2nd is today. Twins.
What happened next? This is the same chart of last December as the anticipated run started. The red arrow points to where the first chart above ended.
Conclusion: We were in the 2nd daily cycle and a rally should begin soon unless something is very wrong. I also looked at the 2 charts below and declared them bullish, to further the case for a bullish move in the near future. They are larger components of GDX. Bullish descending wedges.
Today we have this (Click to isolate)
GDX 2 hrs into trading
I have been calling for another leg up, but many were growing weary (understandable with that GDX drop) . The above analysis was designed to help my readers to see the possibility and likelihood of the coming move higher. We saw dips like that before, right before a rally. It’s time to go shopping friends. Find your favorite Miners and gather a basket, start small if you have your doubts. Were you confidently expecting a move higher in Gold? Do you still have doubts? Though we saw weakness in Miners, we were still expecting a move higher in Gold , and we were watching for the Miners to get on board. Today we are seeing positive follow through.
I will be covering some set ups in future premium reports, and also navigating this move forward, since I believe we have started the next leg higher. Why not try a 1 month sign up? Thanks for being here!