Gold Setting Up For A Bounce?

gold bars

Technical analyst Jack Chan of Streetwise Reports charts the latest moves in the gold and silver markets, which could be setting up for a bounce soon.

chancover_12-3

Our proprietary cycle indicator has turned up this week.

chanhui12-3
The gold sector, tracked by the HUI “Gold Bugs” Index, 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.

chanhui212-3
The gold sector is also on a short-term buy signal. Short-term signals can last for days and weeks, and are more suitable for traders who are nimble enough to get in and out of positions quickly.

goldspec12-3
Speculation has now dropped below the level of the previous bottom, which is an indicator of a potential bottom forming.

changdx12-3
The trend for gold miners, as measured by the GDX, is down.

chansilver12-3
Silver is on a long-term buy signal.

chanslv12-3
The largest silver ETF, SLV is on a short-term sell signal, and short-term signals can last for days to weeks. These signals are more suitable for traders.

Summary
The gold sector is on a major buy signal, from both a short-term and long-term perspective. The cycle is now up but the trend remains down. A counter-trend bounce is in progress. Caution is advised as a result.

This article is brought to you courtesy of Streetwise Reports.