Login

Dr. Bernanke's Golden Conundrum: "The gold market feels like the Indy 500 track on race day"

Share on Facebook Tweet on Twitter

Posted by Stewart Thomson via Graceland Updates

on Tuesday, 17 July 2012 14:26

1. The gold market feels like the Indy 500 track on race day.  All the cars of the precious metals sector are revving their engines on the start line.        

2. The junior gold stock sector seems to be revving its engine the loudest of all.  To get a visual picture of why I hear that sound, please click here now.

3. I’ve compared GDXJ to CDNX, and you can see that a head & shoulders bottom pattern has formed, suggesting that junior gold stocks are poised to significantly outperform the general junior resource sector.

4. Both the GDXJ daily chart and the 30 minute chart have very bullish patterns in play.  Please click here now.  Indicators like MACD are moving higher and selling has dried up.

5.    When few sellers remain in an oversold market, strongly bullish news can send the price higher surprisingly quickly.

6.    Please click here now.  This 30 minute chart showcases an island bottom.  GDXJ is currently “chewing” at resistance in the $19 area.

7.    I expect GDXJ will burst through that resistance and charge higher, but it’s important to remember that charts show investors a picture of what is probable, not what is guaranteed.

8.    The most probable scenario indicated is that GDXJ makes its way to the dotted black line I highlighted on the daily chart at $27.16, but Ben Bernanke could throw a monkey wrench into our victory dance. 

9.    Dr. Bernanke is scheduled to speak publicly today and tomorrow. There’s no question that the “recovery” has lost steam, and it would seem logical that anything he says should be supportive for gold.

....read points 10-24 HERE


Free Subscription Service - sign up today!

Exclusive content sent directly to your Inbox

  • What Mike's Reading

    His top research pick

  • Numbers You Should Know

    Weekly astonishing statistics

  • Quote of the Week

    Wisdom from the World

  • Top 5 Articles

    Most Popular postings

Learn more...



Our Premium Service:
The Inside Edge on Making Money

Latest Update

Looking for the Bounce

On Monday from the morning high to the afternoon low the DJIA dropped over 900 points, then bounced over 300 points to “only” close down...

- posted by Martin Straith, Trend Technical Trader

Michael Campbell
Tyler Bollhorn Eric Coffin Patrick Ceresna
Josef Mark Leibovit Greg Weldon Ryan Irvine