- To view the big picture for
gold, please click
here now. Gold has been consolidating for almost a year.
- Two key symmetrical triangles
have formed, and they appear to be acting as the "firing pins"
that will help gold begin a major price advance.
- Please click
here now. You can see that gold pulled back towards the middle of
the green triangle, and then quickly bounced higher.
- As of this morning, gold is also
trading above the larger dark blue triangle, which technically confirms
a breakout. That breakout should produce serious follow-through to
yesterday's price action, for the rest of the trading week.
- Please click
here now. Is that a chart, or a piece of sculpture created by
Michelangelo? I would argue that the GDXJ chart qualifies as "chart
of the year".
- Many individual junior gold
stocks are coming to life, and this GDXJ chart suggests a virtual price
geyser is imminent. Note the small but beautiful head & shoulders
bottom. It is a complex pattern, featuring two heads.
- The neckline of that pattern
sits at about $20.30, denoted by the thin black line of HSR (horizontal
support & resistance).
- GDXJ had a great day of trading
yesterday, but Canadian markets were closed. Many hedge funds engage in
what may be called "nefarious" shorting of junior resource
companies on the CDNX exchange.
- When Canadian markets open
today, I want to see GDXJ blast up through the neckline and over the
green downtrend line.
- The two green trend lines denote
an enormous bullish wedge pattern. The GDXJ chart could be termed a
"snorting bull". The chart showcases a double bottom pattern,
a head & shoulders bottom, and a bullish wedge.
- I don't think that junior gold
stock investors could ask for a more bullish chart than this one.
- The amount of pain endured by
the average gold stock investor in this crisis rivals that endured by
1990s technology stock investors. The difference is that you are likely
about to be rewarded in a very big way!
- Silver fans should click
here now. Note the bullish pullback to the apex of a triangle
pattern. It's technically bearish if the price "hangs around"
the apex, and bullish if it can quickly move
- In this case, price has moved
higher, opening the door for a run towards $28.50. Silver is trading
less aggressively than gold is now, which is what I want to see at the
beginning of a major bull phase for precious metals.
- August 7th is my "official
start date" to the Dow crash season, and it runs to October 31. The
Dow rarely crashes, but I still like to be out of the market during
- Platinum is a metal that is much
more volatile than gold and tends to crash badly when the Dow crashes.
In 2008, platinum fell over 60%, while gold only fell by about 30%.
- Is platinum hinting that the
global economy, and perhaps the Dow, are about to take a hit? Please click
- While the gold and silver charts
look superb, there is a nasty head & shoulders top pattern in place
on the weekly platinum chart.
- It is sitting on strong price
support on the longer term charts. Please click
here now. You can see that $1340 and $938 are two key areas of enormous
- I would be a modest buyer of
platinum in the current $1400 area, and a much more substantial buyer
in the $900-$1000 area.
- Please click
here now. GDX performed like a champion yesterday, and I expect more
of the same action all week long.
- Note the HSR line defined by the
circled low at $43.98. GDX is chewing at that resistance like a pitbull chews on balsa wood.
- If GDX can get over $44, I think
it will quickly surge towards the HSR created by the circled high of
$48.72, and the circled low of $49.22.
- The 2011 gold stocks debacle was
arguably as bad as the wipeout of the early 1980s or the lows of 1999,
but the gold community, and the stocks it invests in,
possess a resiliency that never existed in the technology sector.
Welcome to the golden age of the gold community. It starts now!
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