Technical analyst Jack Chan has examined the charts and says that if we are in a new bull market, prices in both gold and gold equities should begin to pull back and consolidate soon.
As suggested in our previous analysis, we need to see a couple of things happening in order to welcome a potential new bull market:
#1. COT data to return to bull market values.
#2. Gold price to exceed the 2015 high at $1,302.
Nobody can predict when this will happen, but we can prepare by looking at the past bull and bear markets so that we can recognize a new bull market if and when it materializes.
The Bear Market From 1981 to 2001
After topping above $700 in 1981, gold lost more than half of its value in just over a year, followed by two sharp bear market rallies, and then died a slow death over the next 12 years. Continue reading "Are We or Are We Not in a New Gold Bull Market?"
Technical analyst Jack Chan has examined the charts and says the gold sector is on a new major buy signal, which could signal a new bull market. But he is patiently waiting for confirmation.
The gold sector is on a new major buy signal, therefore opening the opportunity of a new bull market. However, Commitment of Traders (COT) data remains in bear market values and is now at levels of previous tops. I remain patient and wait for confirmation, which is when speculation according to published COT data has returned to bull market values, and the 2015 high in gold prices near $1,300/oz is exceeded to the upside.
$HUI is on a new long-term buy signal, ending the sell signal from early 2012. (See chart above).
Long-term signals can last for months and years and are more suitable for the long-term investors. Continue reading "Jack Chan Sees New Major Buy Signal For Gold But Is Patient"