Gold Price Exclusive Update

Technical Analyst & Editor
May 21, 2022

Our proprietary cycle indicator is down, but bottoming.

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 is on a new long term BUY signal, suggesting that the correction since 2020 has been completed.

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

Speculation according to COT data is now at level of previous bottoms.

Expect overall higher prices.

Our ratio is on sell signal, but a new buy signal is imminent.

Trend is up for the dollar.

$HUI is testing support.

Gold is testing support.

The multi year “cup with handle” is in progress.

The sharp sell off of the past few weeks and a firm bounce this week has resulted in a new price pattern: an inverse head & shoulder.

Summary

Long term – on BUY signal.

Short term – on mixed signals.

Gold sector cycle is down but bottoming.

Speculation has reached level of previous bottoms, expect overall higher prices.

$$$ We are holding a core position and will continue to accumulate 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.


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