As metals market April to October cycle inversion reaches its potential crescendo today, I invite savvy investors to consider joining me…
On the short-term chart, has an interesting pattern. It could be a double top that targets the $4060-$3960 zone.
It could also be a bullish rectangle that targets $4600.
For further insight into the matter, the chart can be of assistance. As the bears take charge! A H&S top is evident, and the neckline has been broken. The technical target is about $46.
The stunning daily chart for gold. A rare broadening top has formed on the RSI oscillator and like Stochastics, it’s been overbought for seven incredible weeks.
The weekly chart. Gamblers and investors with no gold at all can buy the $4000 area or a breakout over $4380.
Everyone else may want to consider focusing on the big congestion zone between $3500 and $3200 as the area to buy.
How much profit should be booked? That depends on the individual investor, but a rough rule of thumb is that hardcore gold bullion bugs could book fiat profits for up to 30% of their position, while fiat bugs using gold to get more fiat could sell as much as 70% of their holdings.
Gamblers can buy or sell any amount at any time, because, simply put, there aren’t many rules in a casino.
Investors who are leveraged should consider significantly reducing or eliminating the use of borrowed funds, at least for now.
What about Elliott Wave? The huge C wave surge has been glorious, but all great parties do have to stop at some point, even if only temporarily.
The good news is that the current tumble is unlikely to mark the end of that big wave… and in fact the strongest part of it may lie ahead, carrying the gold price to $5000 or even $10,000.
What about the end of “final” Wave E? Well, I’ve suggested a very ominous US stock market 100year anniversary event could occur in October of 2029. That’s a full four years away and I expect it to play out something like the 2008 crash did for gold…
Meaning it could end in just months rather than drag on years like the declines (gulags?) of 2013-2023 and 1980-2000 did.
The miners? The CDNX daily chart. Like gold and silver bullion, the miners rallied and held a technically overbought position for almost two months.
Some pullback now is healthy and normal, and for the juniors that pullback could end in the 820-760 CDNX congestion zone.
On the weekly chart that pullback would likely create a bull flag, and it could be followed by a thunderous surge… as the biggest part of the Elliott C Wave carries gold towards previously unimaginable heights!
A wondrous love trade and fear trade collision is in play. In time, the coming (or already underway?) pullback will be little more than dust in a bull era wind.
In the West gold stocks are like ornamental jewellery in the East. There’s more volatility than with gold, for even the mightiest miners, but they are on the cusp of a new era that could see them stage the greatest bull run in the history of markets.
The fabulous versus gold chart. The current pullback is likely simply setting up the launch of a massive Elliott C Wave that, until now, has lagged gold.
A look at GDX priced in vile US fiat. I suggested that gold stock enthusiasts could begin booking light profits at $70 and steadily intensify their action if the price continued to rise, which it did.
A look at the daily chart. The huge volume bar needs to be respected, at least in the short-term. The uptrend line likely breaks today, getting the pullback “officially underway”. From there, gamblers could look to buy the miners in the $4060-$3960 zone for gold, and investors could focus on $3500-$3200… which may or may not occur. In a nutshell, it’s been a magnificent ride, and an even more magnificent one should follow this needed pause.
