Gold And Silver Charts Looking Most Encouraging...
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The charts for gold and silver continue to look very positive and this looks like a good point to buy the sector after the correction of the past month that has caused quite severe reactions in a number of PM stocks. This update features 6-month charts for gold, silver and GDX (stocks ETF) and probably the most important point to observe on them is the way that the Accumulation line for each of them has held up very well on the correction and remarkably the Accumulation line for gold has been making new highs despite gold being still some way below its highs and silver looks strong in this regard too. This is viewed as very bullish and a sign that the corrective phase has run its course and a new intermediate uptrend is likely to begin soon. Another interesting point to observe on these charts is the recent strength of silver relative to gold – gold has been in corrective mode since April but silver forged ahead in May making another upleg within its uptrend. Note also how the earlier overbought condition on all these charts has now fully unwound, as shown by their respective MACD indicators, which means that upside potential has been fully restored.
The conclusion is that we are at a very good point to buy the sector or add to positions especially in the better stocks that have corrected.
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Clive P. Maund’s interest in markets started when, as an aimless youth searching for direction in his mid-20’s, he inherited some money. Unfortunately it was not enough to live a utopian lifestyle as a playboy or retire very young. Therefore on the advice of his brother, he bought a load of British Petroleum stock, which promptly went up 20% in the space of a few weeks. Clive sold them at the top…which really fired his imagination. The prospect of being able to buy securities and sell them later at a higher price, and make money for doing little or no work was most attractive – and so the quest began, especially as he had been further stoked up by watching from the sidelines with a mixture of fascination and envy as fortunes were made in the roaring gold and silver bull market of the late 70’s.
Clive furthered his education in Technical Analysis or charting by ordering various good books from the US and by applying what he learned at work on an everyday basis. He also obtained the UK Society of Technical Analysts’ Diploma.
The years following 2005 saw the boom phase of the Gold and Silver bull market, until they peaked in late 2011. While there is ongoing debate about whether that was the final high, it is not believed to be because of the continuing global debasement of fiat currency. The bear market since 2011 is viewed as being very similar to the 2-year reaction in the mid-70’s, which was preceded by a powerful advance and was followed by a gigantic parabolic price ramp. Moreover, Precious Metals should come back into their own when the various asset bubbles elsewhere burst, which looks set to happen anytime soon.
Visit Clive at his website: CliveMaund.com
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