Gold Price Exclusive Update Shows Trend Remains Down

Our proprietary cycle indicator is down.

To public readers of our updates, our cycle indicator is one of the most effective timing tool for traders and investors. It is not perfect, because periodically the market can be more volatile and can result in short term whipsaws. But overall, the cycle indicator provides us with a clear direction how we should be speculating.

Investors

During a major buy signal, investors can accumulate positions by cost averaging at cycle bottoms, ideally when prices are at or near the daily 200ema.

During a major sell signal, investors should be hedged or in cash.

Traders

Simply cost average in at cycle bottoms when prices are at or near the daily 200ema; and cost average out at cycle tops when prices are above the daily 50ema.

Gold sector remains on long-term buy at the end of May.

GLD is on short-term buy signal.

GDX is on short-term sell signal.

XGD.to is on short-term sell signal.

GDXJ is on short-term sell signal.

Analysis

Our ratio is on sell signal.

Long-term remains bullish.

Next major resistance is at 500.

Next major resistance at 50.

GDXJ is at resistance.

Summary

Long-term – on major buy signal.

Short-term – on mixed signals.

Gold sector cycle is down, a multi week correction is in progress.

We cashed out on half of our core position with a 77% gain, holding remaining for the long-term, and will allocate more capital at the next cycle bottom.

Disclosure

We do not offer predictions or forecasts for the markets. What you see here is our simple trading model which provides us the signals and set ups to be either long, short, or in cash at any given time. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets. Trade at your own discretion.

Jack Chan is the editor of Simply Profits at www.simplyprofits.org, established in 2006. Jack bought his first mining stock, Hoko Exploration in 1979, and has been active in the markets for the past 40 years. Technical analysis has helped him filter out the noise and focus on the when, and leaving the why to the fundamental analysts. His proprietary trading models have enabled him to identify the Nasdaq top in 2000, the new gold bull market in 2001, the stock market top in 2007, the US dollar bottom in 2011, and most recently, overweighing in bonds over stocks in 2019 before COVID19 became a household name.