Technical analyst Jack Chan charts the latest moves in the multiweek correction in the gold and silver markets.
Our proprietary cycle indicator remains down.
Our short position was stopped out at break-even; stay neutral for now.
Our ratio remains on sell signal.
Speculation remains near the all-time high.
Gold stocks as represented by $HUI are on a major buy signal, but with the cycle down, a multiweek correction is in progress. Investors should wait for the next cycle bottom to accumulate gold stocks or ETFs.
Silver is on a long-term buy signal, and long-term signals can last for months to years, more suitable for long-term investors.
SLV is on a short-term buy signal, and short-term signals can last for days to weeks, more suitable for traders.
Summary
A bull market in gold and silver has been confirmed, but the cycle is down and a multiweek correction is in progress. Caution is advised.
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) Statements and opinions expressed are the opinions of Jack Chan and not of Streetwise …read more