Jordan Roy-Byrne: The Long Term Gold Chart is Really Exciting
Jordan discusses his latest article where he points out that the signs are close for declaring a new bull market. The indicators are all showing positive. Both GDX and GDXJ have surged in their long term moving averages. We still need to rally up to the resistance levels but we are so close and the evidence is mounting. Lastly, he is looking for the ratio of gold compared to the stock markets to rise which is a classic bull market sign.
The longer a basing pattern takes the stronger the breakout. It’s possible that gold could run quickly or do a breakout and a re-test. We have been basing for upwards of six years, and this is setting up for a sharp move higher.
The junior sector only moves after gold and the larger stocks. This gives you an opportunity to get in after the price move. That is the nice thing about investing in juniors. Unless you do your research and understand the risk then invest in several juniors otherwise, the easiest way is to buy the GDXJ.
The strength of the equity markets has made it very difficult for the contrarians, possibly even more so than in the early 2000s. Being a contrarian is all about the timing and being earlier than the bottom can be very difficult for most people.
Gold is continuing to show excellent relative strength and gold against foreign currencies just closed at a two and a half year high. If we see a new high against the S&P 500 that will be a huge indicator for the breakout, we are almost there. Keep an eye on the Fed that is the only thing that could postpone the bull market.
Time Stamp References:
1:20 – Jordan discusses his latest analysis.
2:40 – Gold needs to re-test resistance levels.
5:10 – Basing period and potential upward potential.
7:00 – Long-term gold chart is very exciting.
8:50 – Watch for a breakout.
11:00 – Risks of being a contrarian.
16:30 – Bull Market is almost confirmed.
Talking Points From This Week’s Episode
• Technicals are looking good for gold.
• The long basing period could result in new highs.
• Junior sector tends to lag the big players and gold.
• Keep an eye on the Fed’s policies.
Jordan Roy-Byrne, CMT, MFTA is a Chartered Market Technician and Master of Financial Technical Analysis who is a member of the Market Technicians Association. He is the publisher and editor of TheDailyGold Premium, a publication which emphasizes market timing and stock selection for precious metals investors. He is also the author of the 2015 book, The Coming Renewal of Gold’s Secular Bull Market and his 2017 Gold & Silver Outlook which are available for free on his website.