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.


Our proprietary cycle indicator has turned up this week.

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.

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.

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

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

Silver is on a long-term buy signal.

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.

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.