Technical analyst Jack Chan shows why Friday’s COT data was so shocking and what it means for gold.
In a single week, not only has gold speculation according to COT data has returned to bull market values, but it also made a new all time high, higher than the bull market top in 2011.
Despite the new record on speculation, gold remains below the 2015 high at 1306.
Summary
This week’s COT data on gold is a shock. It made a new all time high on speculation and yet gold remains $600 below the 2011 price peak. Common sense suggests that gold is now at a major top with overall lower prices in coming months and perhaps years as the bear market rally completes.
Jack Chan is the editor of Simply Profits at www.simplyprofits.org, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave 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, and the U.S. dollar bottom in 2011.
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Disclosure:
1) Statement and opinions expressed are the opinions of Jack Chan and not of Streetwise Reports or its officers. Jack Chan is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any …read more