Gold Price Exclusive Update

June 22, 2019

Our proprietary cycle indicator is up.

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 major buy signal.

GLD is on short-term buy signal.

GDX is on short-term buy signal.

XGD.to is on short-term buy signal.

GDXJ is on short-term buy signal.

Analysis

COT data is supportive for overall higher gold prices.

This is the chart which matters.

We’ve been monitoring this multi year bottoming chart for quite some time, and this week, our patience has finally paid off.

Not only we have a major breakout, gold prices blew thru all resistance to reach a six year high.

At the same time, USD has broken support to confirm the ending diagonal corrective pattern.

This week’s breakout confirms that the multi year correction is complete, with a new bull leg now in progress.

Gold stocks outperforming gold is a must in a bull market.

Summary

Long-term – on major buy signal.

Short-term – on buy signals.

Gold sector cycle is up.

COT data is favorable for overall higher metal prices.

Maintain positions and stay the course.

New money can buy upon a pullback or when short term becomes oversold.

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 at www.simplyprofits.org, 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 periodic symbol for gold is AU which come from the Latin for gold aurum.

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