Bearish Gold Sentiment Presents Long-Term Buying Opportunity (GLD)

Share This Article
August 16, 2018 6:18am NYSE:GLD

From Streetwise Reports: In his weekly precious metals market update, technical analyst Jack Chan charts the latest moves in the gold and silver markets.



Our proprietary cycle indicator is down.


The gold sector is on a long-term buy signal. Long-term signals can last for months and years and are more suitable for investors holding for long term.


The gold sector is on a short-term sell signal. Short-term signals can last for days and weeks, and are more suitable for traders.


Our ratio between gold and gold stocks is on short-term sell signal.


Speculation on gold is at a multiyear low.


Silver is on a long-term buy signal.


SLV is on a short-term buy signal, and short-term signals can last for days to weeks, more suitable for traders.


COT data is at levels of previous bottoms.


UUP, ETF for USD, gapped up on Friday. The question is, is this an exhaustion gap or breakaway gap? Over the years, my observation on such a gap after an extended rally is often an exhaustion gap.


FXE, ETF for the Euro, may help shed some light. Friday’s gap had the lightest volume relative to the two previous gaps, a sign of selling exhaustion.

Summary
The precious metals sector is on a long-term buy signal. Short-term is on mixed signals. The cycle is down. From a contrarian point of view, the current extreme bearish sentiment is an excellent buying opportunity for long-term investors. We are holding gold-related ETFs for long-term gain.


The SPDR Gold Trust ETF (GLD) rose $0.46 (+0.41%) in premarket trading Thursday. Year-to-date, GLD has declined -10.08%, versus a 6.01% rise in the benchmark S&P 500 index during the same period.

GLD currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #1 of 35 ETFs in the Precious Metals ETFs category.


This article is brought to you courtesy of Streetwise Reports.


9 "Must Own" Growth Stocks For 2019

Read Next



Get Free Updates

Join over 50,000 investors who get the latest news from ETFDailyNews.com!

Most Popular



Explore More from ETFDailyNews.com

Free Daily Newsletter

Get daily ETF insights from our market experts. Never miss another important market development again!

ETFDailyNews.com respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories