Metals Topping

in gold •  7 years ago 

Gold had a nice rally, bigger than I expected from the low of 1204 to a high today at 1259. But once again the miners are signalling that gold has topped or is very near to doing so. We are now on day 10 of this gold rally and day 9 for the GDX miners. If gold tops out this week then this cycle will be another left translated one ie. new lows in the miners and gold could still be ahead.

Capture.PNG

Today the miners have made a swing high and the candle for the day will be a bearish engulfing. MACD is also looking tired.

Capture.PNG

Gold cycles typically run anywhere from 28 days to 40 days. So if the top occurs this week then we can expect a bottom in the miners sometime in the latter part of August. All of these gains in the miners since July 10 will be erased and GDX should decisively break 21 this time around if gold continues down into its intermediate decline. I remain Bearish on gold.

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Nice post. Honestly, the only chart I'm interested in is the one where Silver and Gold go straight to the MOON! ;)

Haha that will come soon later in the year

Good to hear from you again. I think the next few days are very important to give us direction for the rest of the summer.

Thx, yes very important. We should know by Friday once FOMC and GDP is out of the way