Below is a fascinating email from one of the King World News global readers discussing gold’s bull market and what to expect next.
November 1 (King World News) – Email from King World News reader Kevin W: The pattern is pretty obvious. (Gold) Bull market 20, 50, 200 moving averages all in proper order on a daily, weekly, and monthly charts. That is significant. It means that we are in a bull market plain. And this is nothing more than a normal pullback to trend-line support as well as those averages.
And GDX is at really solid support. People that can’t handle the volatility and exit do so here mistakenly with these moving averages as they are. Could it continue and go down to 200 day. It could but is unlikely to do that until prices have reached extreme levels on monthly charts. What is that? 80-100% above the 200 mo. SMA. That is 57-65 on GDX. Then we see a more pronounced correction breaking chart patterns and watching 20 day not only falil at support but the 50 day and even seeing the 20 day go back below 50 day turning heads down all the way till 200 day SMA where stops galore exist for a washout. But the market will rally now very fast after this support holds because the stars are all aligned and extremes not yet met…
Listen to the greatest Egon von Greyerz audio interview ever
by CLICKING HERE OR ON THE IMAGE BELOW.
Now take gold itself. It did not top out in Aug. ’11 until it was 246% above its 200 mo. SMA. That would be $5300 right now.
Aug. ’11 as well as March ’08 both saw gold hit 75% above its 50 mo. SMA before a substantial correction. That would take it to $3400 now. Maybe that won’t happen as quickly as I think and instead slowly trend higher along with those averages, but if it does then time for a correction back to some major support like the 200 day after that.
© 2024 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the articles is permitted and encouraged.
