Gold shows all the signs of going nowhere fast. Cycles are juxtaposed and the price is locked in a tight range. The 13 week cycle is due for an upturn in the next xxxx (in subscriber version), which would be conducive to a run to at least xxxx, but it would need to clear xxxx to get a real bull move started.. A breakdown below xxxx would be a bearish sign as it would complete a head and shoulders top pattern with a measured move target of around xxxx.
On the very long term monthly chart, gold nears the end of December at a critical trend area around 1790. If it ends January below that, it’s in danger of falling into the xxxx (in subscriber version).
HUI – The 13 week cycle appears to have joined shorter cycles in an up phase. It’s ideally due to last 6-10 weeks but is due to remain flat. There’s no sign yet that longer cycles will turn xxxx (in subscriber version), . On the long term weekly chart HUI is holding precariously at the 6 month cycle MA.
On the ultra long term monthly chart HUI remains entrenched in a 16 month downtrend. Ultra long term momentum remains precariously neutral. If HUI ends December below xxxx (in subscriber version). The target could be xxxx–xxxx in the first quarter of 2022. Even if above xxxx, it would still face major resistance in the xxxx range. It would need to break that to end the downtrend.
Chart Picks – There are 11 buys and 2 sells from the swing trade screens of 52 gold mining stocks from Tuesday’s action. The rest had no signal. I looked at the charts, and, in a change from recent weeks, there were 3 charts where I liked the setups. I’ll start tracking them as buys as of this morning’s open.
There were no open picks over the last week as the last one had been stopped out. Picks closed out over the past month had an average gain of 10% on an average holding period of 46 calendar days.
The strategy and tactics suggestions in this report are for informational and entertainment purposes, and illustrative of one approach. Nothing in this report is meant as personalized investment advice and you should not construe it as such. No representation is made that it is the best approach, will be profitable, or suitable for you.