From Streetwise Reports: Technical analyst Jack Chan charts the latest moves in the gold and silver markets, as well as the one-day fluctuations of a gold major.
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.
Gold sector is on a short term buy signal. Short term signals can last for days and weeks, and are more suitable for traders.
Speculation favors overall higher gold prices.
Gold stocks relative to gold is at the same oversold level as Dec 2016.
Barrick Gold Corp. (ABX:TSX; ABX:NYSE), a major component in the gold stock indices and ETFs, gapped down on heavy volume on Nov. 30 but closed the day with a doji, suggesting price exhaustion.
A pullback on the dollar is supportive for the metals.
Silver is on a long-term buy signal.
SLV is on a short-term sell signal, and short-term signals can last for days to weeks, more suitable for traders.
Speculation favors overall higher silver prices.
The precious metals sector is on major buy signal. The cycle is down, as the multimonth consolidation continues. COT data is supportive for overall higher metal prices. We are holding gold-related ETFs for long-term gain.
The SPDR Gold Trust ETF (GLD) rose $0.05 (+0.04%) in premarket trading Wednesday. Year-to-date, GLD has gained 9.77%, versus a 18.83% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Streetwise Reports.