Gold Price Exclusive Update

January 23, 2021
Technical Analyst & Editor

Our proprietary cycle indicator is down.

To public readers of our updates, our cycle indicator is one of the most effective timing tool for traders and investors. It is not perfect, because periodically the market can be more volatile and can result in short term whipsaws. But overall, the cycle indicator provides us with a clear direction how we should be speculating.

Investors

During a major buy signal, investors can accumulate positions by cost averaging at cycle bottoms, ideally when prices are at or near the daily 200ema.

During a major sell signal, investors should be hedged or in cash.

Traders

Simply cost average in at cycle bottoms when prices are at or near the daily 200ema; and cost average out at cycle tops when prices are above the daily 50ema.

Gold sector remains on long-term BUY at the end of December.

GLD is on short-term sell signal.

GDX is on short-term sell signal.

XGD.to is on short-term sell signal.

GDXJ is on short-term sell signal.

Analysis

COT data is not definitive at this point, as speculative long and short positions are too close to each other.

Our ratio is on sell signal.

USD – is on a buy signal.

A rising dollar is not friendly to the metals.

Good news is that prices are again at the 200ema support.

Gap is now filled.

Gold stock giant Newmont also filled the up gap on Friday, and if support holds, looking for that down gap at $67 to be filled in coming days.

Summary

Long-term – on major BUY signal.

Short-term – on sell signals.

Gold sector cycle is down.

The correction continues.

$$$ We are holding long and short-term positions.

Disclosure

We do not offer predictions or forecasts for the markets. What you see here is our simple trading model which provides us the signals and set ups to be either long, short, or in cash at any given time. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets. Trade at your own discretion.

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Jack Chan is the editor of Simply Profits, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the US dollar bottom in 2011.

The total world's holdings of gold could be transported by a single solitary oil tanker.

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