Two weeks ago we penned Gold
Bear to end with a Bang, and noted the increasing probability that precious
metals could be headed for a plunge to new lows ahead of a final major bottom.
Two weeks later we continue to hold that view. The forthcoming charts present
levels at which the more than two year old cyclical bear market could end.
At the least, these support levels can provide a point at which short positions
and hedges could be liquidated.
The chart below shows that Gold has major trendline support just above $1100.
Also note that the 50% retracement of Gold's entire bull market is $1087. Keep
these strong targets in mind.
Like Gold, Silver has major trendline support which could come into play in
the coming days and weeks. Keep an eye on $17. Silver is currently underperforming
Gold so pay more attention to Gold. It's the "granddaddy" of the sector as
some like to say and the most important component of the precious metals sector.
Meanwhile, gold stocks are approaching what amounts to be nearly 12 years
of support. The GDM index below, is the forerunner to the GDX ETF.
Don't be fazed if the metals and the shares make new lows. As you can see,
the precious metals complex has very strong support nearby. Ignore the financial
media and mainstream thought and get yourself in position to take advantage
of this bottom. It's the very smart money that is looking forward to buying
this bottom. I suspect the coming bottom will be the one the typical huge rebounds
originate from.
Good Luck!
If you'd be interested in more of this analysis and the companies
poised to rocket out of this bottom then we invite you to learn
more about our service.
