from Silver Doctors:
Investors need to keep an open mind…
by Stewart Thomson of Graceland Updates
- Is the gold price reaction over?
- Well, since the rally began in the $1170 area, corrections have not lasted very long.
- After rallying to the $1566 area, gold has pulled back to about $1500. Check out this chart. Strong trend line support is already in play.
- Investors need to keep an open mind; it’s possible that the $1500 area is now support rather than resistance, and gold is set to rally towards the $1600-$1700 area.
- Please click here now: https://gracelandupdates.com/wordpress/wp-content/uploads/2019/09/2019sep10gold2.png Double-click to enlarge. Note the lows in the $1526 area in the 2011-2012 timeframe.
- Those lows may now be functioning as support as gold reacts from the $1566 area highs. Also, $1500 is a key round number that may now be functioning as support rather than resistance for institutional money managers.
- Indian festival buying may be picking up as well. Indians have been waiting for a decent pullback for months, and now it is here.
- Please click here now: https://gracelandupdates.com/wordpress/wp-content/uploads/2019/09/2019sep10trustydusty.png Double-click to enlarge this GDX swing trade chart.
- I recommend that most gold investors should consider allocating some capital to a swing trade program.
- My www.guswinger.com system has been in DUST-NYSE as GDX been “spanked”, and it’s now time to book solid profit on at least a portion of the position.
- Note the key low on the GDX chart at $27.61. If it’s violated, GDX could decline to the $26.04 area. Having said that, proper tactics can reduce investor risk dramatically.
- My suggestion to core position enthusiasts is to buy some gold stock now, and more if there is a deeper reaction. A stop order can be placed just under the $27.61 low.
- Investors who don’t like stops can also buy the $27.61 area…with very small size.
- Please click here now:https://gracelandupdates.com/wordpress/wp-content/uploads/2019/09/2019sep10gdx1.png Double-click to enlarge. If the inverse H&S bottom on this weekly GDX chart is legitimate, the current reaction is likely to be very shallow and may already be ending.
- The target of the pattern is about $50. The biggest risk investors face now is not drawdowns, but rather missing out on a major run higher in most of the world’s quality miners!
- Please click here now:https://gracelandupdates.com/wordpress/wp-content/uploads/2019/09/2019sep10trade1.png The global economy continues to weaken, and politicians do nothing but spend, borrow, and beg for more QE and negative rates.
- That’s pouring gas on the fire. Negative rates and QE incentivize governments to go even deeper into debt.
- Please click here now: “In the next credit cycle downturn, then, the generally lower credit quality of today’s speculative-grade population means that the default count could exceed the Great Recession peak of 14% of all rated issuers….”– Christina Padgett, Moody’s VP, Sep 9, 2019.
- This is spectacular news for gold!
- Please click here now:https://gracelandupdates.com/wordpress/wp-content/uploads/2019/09/2019sep10gdxj1.png Double-click to enlarge this GDXJ chart.
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