Read the story here. Advertise at Before It's News here.
Profile image
By The Daily Gold (Reporter)
Contributor profile | More stories
Story Views
Last Hour:
Last 24 Hours:

Textbook Bullish Setups in Gold & Gold Stocks

% of readers think this story is Fact. Add your two cents.

It appears the Gold sector is in a correction that could become its most serious since March. 

GDX has corrected 13% while GDXJ has corrected nearly 15%. Silver meanwhile has held up much better than Gold, which failed to break resistance at $1760/oz. 

During the rapid rebounds of 2008 and 2016, corrections in the gold stocks tended to be 17% to 20%. 

There were far more of those in 2008 and 2009 than in 2016. Corrections are a good thing as they pave the way for new buyers and new adopters, which in turn, strengthens the trend.

In only a matter of days, GDX and GDXJ nearly touched our downside targets. 

Regardless of how much longer or how much deeper this setback is, it is important to keep the big picture in mind. Gold and gold stocks, in particular, have precise, bullish setups with the potential for huge moves over the next 12 to 18 months.

Let’s start with the large gold stocks. 

GDX just broke out from a 7-year base.

The term “breakout” gets applied to almost every wiggle in the market. It irks me because it takes attention away from the real breakouts, like what just happened in GDX.

It’s a breakout with implications for the next several years, and recent action could merely be a retest of the breakout. That is typical and textbook.  

GDXJ is correcting after reaching 7-year resistance for the first time since 2016. That’s normal as breakouts do not typically occur on the first try. 

It hasn’t broken out yet, but odds are it will sooner rather than later. 

GDX (top), GDXJ Weekly

The setup in Gold is not as immediately bullish as what we see in the gold stocks, but there is a long-term bullish setup. 

Gold, which has been unable to surpass $1760/oz, has stiff resistance at $1800/oz and $1900/oz. 

If Gold can reach $1900/oz, then it will show a potential cup and handle pattern which, upon a break past $1900/oz, projects to a measured upside target of $2,750/oz. 

Gold Weekly

Whether the current correction lasts another two weeks or seven weeks (pick a random number) it will not change the larger bullish setup that is in place for Gold and especially the gold stocks. 

Although they have come very close to our correction targets, I would give it more time. A record two-month rebound in the gold stocks is not going to correct itself in only one week. 

I would also take our cues more from the stocks than the metals as they figure to be a better leading indicator.

As I wrote last week, if you are fully invested, hold your positions. 

If you need to deploy cash, make your company list and accumulate on weakness. 

We continue to focus on identifying and accumulating the stocks that have significant upside potential over the next 12 months. To learn the stocks we own and intend to accumulate that have 3x to 5x potential, consider learning more about our premium service.

The post Textbook Bullish Setups in Gold & Gold Stocks appeared first on The Daily Gold.

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at

Order by Phone at 888-809-8385 or online at

Get our Free Ebook, "Suppressed Health Secrets"  with  Natural Cures THEY don't want you to know!

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Organic Hemp Extract (CBD) - Full Spectrum high CBD (3300mg) hemp extract eases stiff joints, relieves stress and more!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse


    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    Load more ...




    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.