Two Sizzling Charts on Gold

A two-week rally in the U.S. dollar squeezed gold mercilessly. And many gold investors ran for the exits.

They’re going to miss the next big rally in gold … and an even BIGGER rally in miners. 

Let me show you what I mean in two charts. First, let’s look at a weekly chart of gold …

Permalink

This pattern is called an inverse head-and-shoulders. If gold can break the “neckline” of that pattern, it could move to $1,640 very quickly. That would light dynamite under select precious metals stocks.

That’s gold. Now, let’s look at gold miners …

Permalink

This is a “candlestick” chart of the VanEck Vectors Gold Miners ETF (NYSE: GDX). It’s a basket of leading gold miners. The candles track the openings, closings and intraday action of the price of GDX.

On the chart, I indicate a candlestick pattern called a “hammer.” It’s quite bullish. Basically, a hammer indicates something (in this case, gold miners) tried to sell off, and then buyers came in to push it higher.

Below the price action is trading volume. You can see that the volume on that hammer was strongly bullish.

Volume confirms price, so we know this rally is real.

And below that is a momentum indicator called “slow stochastics.” This is good for short-term cycles. It looks like a series of waves, right? Well, that wave just bottomed, and looks ready to head higher. This momentum shift could propel the GDX quite a bit higher.

We are obviously looking at a great set-up for a gold miner rally. And if gold can push above that “neckline” on the first chart, this could be the start of something BIG.

Here’s one thing to keep in mind …

China remains the world’s largest gold consumer. China’s total gold consumption rose 9.4% to 1,089 metric tons in 2017. The Chinese lunar New Year starts on Friday, Feb. 16. That could keep a lid on any gold rally, as Chinese buyers go on vacation.

On the other hand, gold likes to make fools of the biggest number of investors. We could see gold rally furiously BECAUSE China is on vacation, so traders there aren’t on hand to stand in gold’s way.

The U.S. dollar is starting to weaken even as I write this. That is the spark gold needs to start heating up. All in all, it’s quite exciting. Keep your eyes on these charts.

And if you’re looking for more hot names for the next gold rally, check out my story about the new Nevada Gold Rush from Saturday.

All the best,
Sean Brodrick

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Comments 14

  1. George Hines February 21, 2018

    What report services are you offering. I took the “Real Wealth Report” while you and Larry were offering it through Weiss. Weiss sold me out and I am pissed at him. I had just purchased the lifetime package to RWR a few months before Weiss sold out. What a loss.
    Please advise how I can follow you. Do you have the Edelson Institute history avalible to you?
    Thanks and have a wonderful day–George at

    Reply

    • Dawn P at Weiss Ratings February 21, 2018

      Thanks for reaching out, George! I’m going to have someone in Customer Care reach out to you to make sure you are hearing from Sean in your inbox.

      Reply

  2. Llalon MIller February 19, 2018

    The chart for gold is readily available and is great but what I would really like to see is Larry’s chart for gold miners is there any chance you will make it available? Thanks for all your other good data.
    Thank you much.
    Llalon Miller

    Reply

  3. Hitesh February 15, 2018

    do you have a monthly subscription????

    Reply

    • Dawn P at Weiss Ratings February 15, 2018

      Hi Hitesh, we do! I will have someone in Customer Care reach out to you. Sean has a monthly newsletter called Wealth Supercycle. You can learn more about it here: https://wsc.weissratings.com/wealth-supercycle. Thanks for your interest!

      Reply

      • hitesh February 15, 2018

        Actually I m more interested in gold, does this subscription covers gold trading also???

        Reply

        • Dawn P at Weiss Ratings February 15, 2018

          Sean does love to talk about gold! Check this out …

          Reply

          • Hitesh February 16, 2018

            hi dawn please suggest me best subscription for trading in gold with cycle charts along with buy and sell signals…
            Does wealth supercycle also suggest buy and sell recomendation on gold long term as well as short term????

  4. Francois February 14, 2018

    Question: Two Sizzling Charts on Gold
    Sean, thanks for your good work. A quick question here; I’m holding a bucket load of GDX which is naturally under water. If you expect that this is going to turn around (bottomed), should I keep my GDX and my gold mining stocks long term or should I sell at estimated (cycle wave 20 Feb 2018 and buy them again approximately 7 days later)? Your feedback would be appreciated!

    Reply

  5. Mark Cavallaro February 13, 2018

    I am long on JNUG and AUY and ISVLF I have been holding ISVLF since your Recommendation in 2007.

    Reply

  6. Lianne Lang February 13, 2018

    What has happened to the charts Larry provided on all the different commodities and metals? I really miss them and that is one reason I became a member of Million-Dollar Gold was to have access to that!

    Reply

    • Dawn P at Weiss Ratings February 15, 2018

      Hi Lianne. You can find Larry’s charts here: https://www.edelsoninstitute.com/category/charts. We upload new ones every non-market-holiday Monday. You can find the tab for “Cycle Charts” on the main EdelsonInstitute.com page to get to this page.

      Reply

  7. Llalon MIller February 13, 2018

    The charts I really want to see is an update on all of Larry’s charts.
    Is there somewhere I can get them

    thank you

    Reply

    • Dawn P at Weiss Ratings February 15, 2018

      Hi! You can find Larry’s charts here: https://www.edelsoninstitute.com/category/charts. We upload new ones every Monday (although not this coming Monday because of the holiday). You can find the tab for “Cycle Charts” on the main EdelsonInstitute.com page to get to this page.

      Reply