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Gold Looks Primed For a Big Snap-Back Rally

Thursday, November 24, 2016 6:09
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(Before It's News)

From Phoenix Capital: If you’re serious about making money from investing in the financial markets, you need to be able to read the crowd… and go against it.

Let me give you an example… Currently one of the biggest consensus views is that the Gold rally is over and Gold is dead as an investment.

Right off the bat, you know this sentiment is at an extreme and off-base. Despite its recent sell-off, Gold is still crushing stocks in terms of performance year to date.

This is a massive “tell”: people believe Gold is doing very badly when in reality it’s nearly doubling stocks’ performance year to date.

Another “tell” is technical in nature. Investor sentiment is acting as though Gold is dead… when in reality Gold is both oversold and about to stage a bullish crossover (when the 50-wma breaks above the 200-wma).

Put another way, Gold is due for a snapback bounce at the very least… at the exact same time that it’s about to trigger a massively bullish long-term buy signal.

This is a textbook recipe for a “rip your face off” rally.

Again, with Gold today we’ve got:

1)   Extremely bearish sentiment.

2)   An oversold security.

3)   A massively bullish long-term buy signal about to trigger.

You can ignore this all you like. But all of the above suggest Gold will be much higher in the coming weeks.

The SPDR Gold Trust ETF (NYSE:GLD) closed at $113.25 per share on Wednesday, down $2.29 (-1.98%). Year-to-date, the largest fund tied to gold prices has gained 11.62%.

This article is brought to you courtesy of ZeroHedge.

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