Technical analyst Jack Chan charts the latest movement in the gold and silver markets, noting the cycle has reversed down.
Our proprietary cycle indicator reversed down this week, now approaching levels of previous bottoms.
The gold sector is on a long-term buy signal. Long-term signals can last for months and years and are more suitable for investors holding for long term.
The gold sector is on a short-term sell signal as the buy signal has failed. Short-term signals can last for days and weeks, and are more suitable for traders.
Speculation dropped sharply, but is not yet at the level of the previous bottom.
The uptrend has ended and a correction is in progress.
Silver is on a long-term buy signal.
SLV is on a short-term sell signal as the buy signal has failed, 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. The cycle reversed down again this week. Our modest positions were stopped out with small losses, and we shall wait for the next cycle bottom.
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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