Sentiment Shifting For Gold Bugs [SPDR Gold Trust (ETF), iShares Silver Trust (ETF)]

We’ll clip it here and move on to the nuts and bolts technical and fundamental analysis.

[end excerpt, new material follows]

Okay, Hulbert’s HGNSI is on board the contrary theme as well.  That only reinforces matters.  Gold trend followers are now hyper bearish, which is good because this is one sector you buy when it is reviled, not cheered for.

hgnsi

But let’s also keep in mind the reason why said trend followers lurched bearish; a very real technical breakdown per this overly simplified chart of a Symmetrical Triangle breakdown.  That’s what’s got everyone freaked out.  Support at 1250 must hold and gold needs to reverse back above 1275 and then we could have a view of a bear trap getting sprung amidst over done negative sentiment.

gold.weekly

This article is brought to you courtesy of Gary Tanashian from the Rabbit Hole.

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