If you haven't been paying attention to the gold (NYMEX:GC.Z16.E) market, you may have missed one of the most interesting moves of the year. As all the major indices have been trending lower gold has been doing just the reverse.
Here are the three positive indicators I see.
1. The weekly Trade Triangle is now green. It triggered on 11/01 at $1281.10
2. The RSI indicator is trending above the 50 level, another positive sign
3. The long-term PSAR on the eight-year spot monthly chart is also positive
If the cyclic pattern holds true, I would expect gold to move up to $1430 before having a correction of any significance.
As with any forecast, one has to be flexible and be willing to adjust to market conditions should they change. As of now all signals are go for the gold market.
There are two mining stocks that you may want also to look at based on trends in gold, and they are Barrick Gold Corp. (NYSE:ABX) which is currently trading around the $18 level. The other stock is Newmont Mining (NYSE:NEM) which is trading around $37.50. I see both of these stocks moving higher as gold moves higher. If you want to be a conservative trader, wait for the monthly Trade Triangle to kick in on both of these stocks before buying them.
Stay focused and disciplined.
Every success with MarketClub,