Gold bugs have been all a-twitter lately, what with gold finally seeming to rise from the dead. But is their excitement warranted? Let’s see what the charts say. Here’s the six-month chart of GLD and a few lines showing the current trading channel.
Let’s look at the “today” chart for early action as the New York market opened this morning (Dec 14, 2018)
Here we see a pattern we’re all too familiar with. Just as gold looks to be about to break out of resistance, “someone” comes in right at the New York open and sells a bunch, driving the price down. That works as long as there’s gold floating around out there to sell, and someone who is willing to sell at the current peak. As we’ve seen so many times in the past though, this tactic starts failing when the market really starts to get nervous. Right now your friendly Gold Enthusiast is far from calling the market nervous, for reasons he’s been quietly pointing out through the selection of featured articles this week.
But one thing is for sure — we are closer to the time when gold either breaks up-and-out or down-and-splash. We’ll be watching!
Sincerely, The Gold Enthusiast
DISCLAIMER: The author is long NUGT and JNUG which are closely related to GDX and GDXJ. These positions are too small to affect the market in any way. The author has no plans to trade these positions over the next 72 hours.