Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By The Daily Gold (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

An Important Low for Gold and Gold Stocks?

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


Gold and gold stocks bounced to end the week thanks to an oversold condition coupled with a softer than expected jobs report which likely delays Fed action until December. At one point this past week the market had priced in a 64% chance of a single rate hike by December and a 42% chance of a rate hike this month. A single rate hike is not going to derail the young bull market in precious metals and as long as the lows of this week hold then the bull market is in position to grow stronger by the end of the year.

Gold this week was able to successfully hold $1300 to $1310 for the third time in the past two months. The daily candle chart below shows how resistance in the spring has become support in the late summer. If Gold can retake $1350 on a weekly basis and $1360 on a daily basis then it would be setup for the next leg to new highs for 2016. Note how the recent two month consolidation held support and did not even test the 50% retracement of the previous advance.  

Gold, Daily Candles

Turning to the miners, we see that they closed the week above a key support level, the 2014 highs. Both GDX and GDXJ, which declined 21% and 22% from their highs closed the week forming bullish reversal patterns (hammers). Miners could continue to rebound towards immediate resistance at GDX $30 and GDXJ $50. That resistance should hold on the first test.  

GDXJ, GDX Weekly Candles

Last week we noted that buying 20% to 25% weakness in a young bull market is likely to payoff in the long run. Traders and investors had that opportunity the middle of this past week. Look for this rebound to continue towards the aforementioned resistance targets. It is too early to say if precious metals are ready to immediately launch higher again. I would not rule out a retest of these lows but at the same time, we should in any case give the benefit of the doubt to the young bull market. For professional guidance in riding the uptrend in Gold, consider learning more about our premium service including our favorite junior miners which we expect to outperform in the second half of 2016.

Jordan Roy-Byrne, CMT, MFTA

[email protected]


Source: https://thedailygold.com/an-important-low-for-gold-and-gold-stocks/


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 https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


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

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

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!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%! (See Video).

Report abuse

    Comments

    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

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    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.