Sunday, August 14, 2016

Gold Poised for Deeper Pullback -- Get Ready to Buy!

On Monday, August 8th, I told Gold & Resource Profit Hunter subscribers to grab gains on half their Silver Wheaton calls. It was a nice gain.  It was also well-time. Gold and silver went nowhere last week, and could go lower this week.

When I recommended grabbing the gains, the chart I showed Gold & Resource Profit Hunter subscribers was this one ...

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(Updated chart)

Most people don't look at monthly charts. Most people are missing vital information.

On this monthly chart, you can see that gold has come up against its downtrend. At the same time, it hit overhead Fibonacci resistance. Fib levels are watched by many, many technical traders, and for that reason alone, they must be respected.

This is a one-two combo that has proved significant overhead resistance.

So how low could gold go?

The short-term (technical) levels of support are $1,309, $1,290 and $1,268.

If you are bearish, you will see these as steps on a path much lower.

If you are bullish -- and I am -- these mark potential buying opportunities. And not to be overly dramatic, but this could be the last great buying opportunity before gold really takes off.

As I said, I recommended subscribers grab gains on HALF their SLW calls. Those calls have plenty of time, and we're holding the rest for potentially bigger gains.

Likewise, we'll sit tight on the gold and silver miner stocks in the Gold & Resource Profit Hunter portfolio.  All but the most recently added are up anyway. And this dip should be a bump in the road.

In fact, it may bring us to buying opportunities on other great companies.

I am making my shopping list now. You should be doing the same. We are still in the early stages of this great bull market.

Good luck to us all, and good trades.

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