• 2 days Ireland Balks At Biden’s Global Tax Plan
  • 4 days Robinhood To Trade On Nasdaq Targeting $32B Valuation
  • 8 days Facial Recognition Is Watching You
  • 9 days Biden’s $3.5T ‘Human Infrastructure’ Workaround
  • 9 days The Fed’s $3 Trillion Headache
  • 12 days Why Bitcoin Could Struggle To Recover After Epic Crash
  • 13 days Wells Fargo Back In The Spotlight Over Personal Loan Cancellations
  • 14 days Delta Variant Real Threat To Economic Recovery
  • 17 days JEDI Drama Continues With Microsoft Contract Cut
  • 19 days DiDi Shares Take a Beating From Chinese Regulators
  • 19 days Thousands Of Companies Hit In Latest Ransomware Attack
  • 20 days Jobs Report Has Big Numbers, But Still Big Problems
  • 20 days Robinhood’s ‘Mission’ Questioned in $70M Fine
  • 24 days Didi Just Went Public, And Uber Is Loving It
  • 25 days Islamic Finance On Track To Hit $3.7 Trillion
  • 26 days The Lumber Bubble Is Bursting
  • 29 days A New Entry In The Two Trillion Dollar Club
  • 30 days 3 Upcoming IPOs To Watch As IPO Market Rebounds
  • 31 days Welcome To The Used Car Bonanza
  • 32 days The Year Of The Retail Investor Keeps Getting Bigger
Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Stewart Thomson

Stewart Thomson

Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am-9am. The newsletter is…

Contact Author

  1. Home
  2. Markets
  3. Other

Gold Stocks: The Need To Bleed

Graceland Updates 4am-7am
Feb 28, 2017

  1. In terms of technical analysis, gold stocks recently reached what I call a "Need to Bleed" price area.

  2. Please click here. Double-click to enlarge this important GDX daily chart.

  3. A very large inverse head and shoulders bottom pattern is in the late stages of forming, and this is great news for gold stock enthusiasts around the world.

  4. Most technical chart patterns are quite small and they tend to fail. This one is bigger, and it has a very aesthetic look.

  5. The price target of this impressive pattern is the $30 - $32 area. That represents a substantial percentage gain for investors, if it plays out.

  6. I'm a GDX buyer this morning, both for myself and for the funds I manage.

  7. 7. Please click here. Gold bullion is displaying very solid price action. Following a likely pullback to $1245, my next technical upside target is $1275.

  8. Should gold experience a deeper pullback ahead of the US debt ceiling deadline and FOMC meeting on March 15, investors should be eager buyers at $1220.

  9. Gold is the world's ultimate asset. It continues to be very well supported by the price action of the "risk-on" US dollar against other key fiat currencies.

  10. Please click here. Double-click to enlarge.

  11. After breaking down from a large head and shoulders top formation against the Swiss franc, the US dollar has formed a bear wedge.

  12. It's now on the verge of breaking down from that wedge. When the dollar fails against the franc, it tends to also fail badly against gold.

  13. In time, I think the dollar will re-test the lows all the way down at the .9550 area, which means that gold will likely soon trade at $1338.

  14. Please click here. Double-click to enlarge this dollar versus yen chart.

  15. The 112.50 support zone for the dollar has been repeatedly tested, and it is barely holding. A meltdown under 112.50 that occurs while the dollar tumbles against the franc would be extremely good news for gold.

  16. Please click here. Double-click to enlarge. That's another key dollar versus yen chart.

  17. The dollar broke down from a double top pattern at the same time as it broke down from the H&S top pattern against the franc. As that happened, the dollar was crushed by gold.

  18. The dollar could now be said to be trading sideways against the yen in a very bearish symmetrical triangle formation. These types of triangles tend to consolidate the existing trend, which is now down for the dollar.

  19. Is the technical situation for the world's dollar bugs becoming perilous? I think so. The dollar looks to be targeting 107.50 against the yen, which also corresponds with $1338 for gold.

  20. Most dollar bugs are also heavily invested in the US stock market.  I think many elderly Americans are hoping that America can relive the glory days of the 1950s, when the US dollar and stock market were almost invincible.

  21. Unfortunately, America's debt levels (personal, corporate, and government) make this a wishful fantasy at best.

  22. To understand the reality of sustainable wealth building in the twenty first century, please click here. Is Donald Trump going to make the American nation great by restricting the arrival of highly educated Indian engineers into the United States?

  23. No, but he's going to make American inflation great for gold stock investors! Deportation is inflationary because it reduces the US work force by about 3% - 7% in size. The time is very near when US corporations will pass on these new wage inflation pressures to their customers.

  24. China and India are going to develop a much closer trade and working relationship. It's going to happen very quickly, while America descends into a stagflationary nightmare, blasting gold stocks higher for many years into the future!

Thanks!
Cheers
St

 


Special Offer For Website Readers: Please send me an Email to freereports4@gracelandupdates.com and I'll send you my free "Golden Dogs & Racehorses!" report. I cover key tactics to handle four well-known gold stocks that are acting like dogs, and provide tactics for four that are acting like the best racehorses!

 

Back to homepage

Leave a comment

Leave a comment