Gold Miners Look To Break Below June Low

November 28th, 2013
in gold, syndication

by Poly, Zentrader

This is an excerpt from this week's premium update from the The Financial Tap, which is dedicated to helping people learn to grow into successful investors by providing cycle research on multiple markets delivered twice weekly. For more up to date commentary subscribe. Now offering monthly & quarterly subscriptions with 30 day refund available if not 100% satisfied.

Follow up:

I'm looking for the miners to break below the June Low, but for Gold to hold above it. A decline by miners below the low should trigger exhaustion selling, but if Gold doesn't confirm, it should mark a significant bear trap for investors in miners. If Gold holds above the June low, additional weakness in miners should be short-lived...and a final bottom in miners will become more likely.

(click to enlarge)
Investor Cycle Trading Strategy - Gold/Silver

Last week, I wrote that I did not want to trade Gold Long until it dropped toward the $1,220 area. I wanted to see the current Daily Cycle step-down into a sharper decline before I had the confidence to buy an oversold Cycle. Waiting, I believed, would provide a good trade setup with a much tighter stop, with the June low of $1,179 just below the expected DCL/ICL.

Last week's strategy is still on play, with Gold having done as we expected. It is now much closer to our target and a week deeper in the timing band. Patience has allowed the setup to come to us. One last drop early next week will create an ideal entry point.

Expected Trade: Within 1-3 Sessions. I'm preparing to buy a 35% position Long Gold/Silver/miners.

Editor's note: This week GDX hit a five-year low of $21.54 on Monday, rebounded to $22.36 Monday afternoon and has traded $21.60 and $21.90 for most of Tuesday and Wednesday.

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2018 Econintersect LLC - all rights reserved