Gold Should Launch A Test Of The $2000 Level During This Intermediate Cycle (GLD, GDX, GDXJ, IAU, DZZ)
Toby Connor: In my last post I hypothesized that the bear market in stocks had finally sunk its teeth into the precious metals sector. I was looking for a final move down into a true D-wave bottom, coupled with the HUI dropping down to test the 200 week moving average. I could not have been more wrong!
Instead gold (NYSE:GLD) formed a double bottom at $1600 and yesterday confirmed a trend change to a pattern of higher highs and higher lows.
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As is usually the case the miners (NYSE:GDX) played follow the leader and reversed their downtrend also.
It is now clear that gold put in an intermediate degree bottom on September 26. The double bottom is a much stronger basing pattern then a V-shaped rebound and should launch a test of the $2000 level at some point during this intermediate cycle.
Related Tickers: SPDR Gold Trust (NYSE:GLD), Market Vectors Junior Gold Miners ETF (NYSE:GDXJ), Market Vectors Gold Miners ETF (NYSE:GDX), PowerShares DB Gold Double Short ETN (NYSE:DZZ), iShares COMEX Gold Trust (NYSE:IAU).
Written By Toby Connor From Gold Scents
Toby Connor is the author of Gold Scents, a financial blog with a special emphasis on the gold secular bull market. Mr. Connor’s analysis skill of the markets is largely self-taught, though he admits to being an avid reader of Richard Russell and Jim Rogers, among several others.
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