Lee AdlerSigns of an intermediate low have joined last weeks indications of a short term bottom. New mining picks got off to a good start, but there are obstacles.
There are a handful of tentative short term buy signals, but… Here’s what to expect, and suggestions on how to trade the miners.
Gold broke a key support level and looks headed for breaking another. That has long term implications for both the metal and the miners.
The good news is that the 9-12 month cycle projection no longer points toward 1700. The outlook will remain bullish if certain things happen this week and next.
We aren’t out of the woods. There are signs that the 9-12 month cycle down phase could be much worse than I originally had hoped. This includes a new downside cycle projection that won’t make you happy, unless you want to accumulate at lower prices.
There were some positive signs for gold last week and they are coming at just the right time.
As the trading range on gold tightens, there are some negative signs. I’m packing it in on most of the the mining picks for the time being.
Obviously, I did not like the action in the metal and miners yesterday. They are edging toward a potential breakdown, but there’s still time for a constructive outcome. Here’s what we’re looking for.
The pop in the miners looks wildly bullish on the charts.
Here’s where to look for gold’s constructive consolidation to turn up. Meanwhile, I’ve added another pick to our list of miners.
