This is pure trend following. After a major breakout, we are next looking at Gold (GC) S/R (Support and Resistance Price Reversals) to indicate a continuation of the Bull run. Gold, on a long term basis, has been outperforming the S&P 500 Index since early May.
So next, have two S/Rs to look at. One is a relatively minor Weekly S/R, and, then a Major Monthly S/R. These two levels are $1,434 and %1,529.
On a long term basis, Gold mining stocks, US Treasury Bonds, and gold, are outperforming The S&P 500 Index. As usual, the reporters on bubblevision aren’t covering this. Instead they have OCD over the latest gimmick from “the social network”.
We can see on the Gold Miners Index (GDM) (GDX) chart, Weekly lookbacks, major S/R (Support and Resistance price reversal) from February, at the $662.10. To continue Bullish, we want to see it close over, on a Weekly and Monthly basis.
Looking at the Weeklies going back 7 years, there is a major S/R (Support and Resistance Price reversal) at $1,365. We can see on the chart, each time it hits that price level it sells off. This is Bullish if it closes over on a Weekly and Monthly.
The Gold Miners Index (GDM) (GDX) continues to break S/R (Support and Resistance Price levels) on a Weekly and Monthly Basis. The next Price Reversal below is at $568.10, trading at $581 today. The short term oscillators such as The RSI are oversold. So, we’ll if a BTD (Buy the dip) develops.
Spot Gold (GC) (GLD) today, trading at $1,276, is under trend of 5% annualized growth rate over 200 days, and, under major S/R (Support and Resistance Price Levels), both March Monthly and Weekly. S/R is $1,281 on this chart.
way outperforming the S&P long term, this ride may be “on hold”
The Gold Miners Index has been outperforming The S&P 500 Index long term. Looking at 32 Weeks, Weekly, we find a major S/R (Support and Resistance Price Level at $598.50( which happens to be The Month Of March Low), trading today before the close at $612.80. A close under $598.50 would signal the Uptrend is probably broken, or at least it will start trading weak relative to the S&P. So we’ll see what happens this week. For the newbs, gold miners can be extremely volatile, both Up and Down. Small position size allows the investor to ride the draw-downs, and sleep at night. These things drive The Lo Vol crowd crazy.
Grinding it’s way from Long Term Downward to, at least Neutral, ..to almost an Upward trend. It is just starting to outperform the Gold Miners Index (GDM)(GDX), and Gold bullion. over 200 days. The Gold Miners Index is outperforming the S&P 500 Index, over 200 days. So, we’ll see if the M&A action in the gold mining industry will pay off for investors.
Looking at this chart of Barrick (GOLD), 36 Months, Monthly, there is a major S/R (Support and Resistance Price Level) at $13.99. ..today trading at $14.12.