Gold investor sentiment is extremely bearish here. I am cautiously optimistic here and was buying back some positions last week on Wed and Friday.
Sentiment, Time and Price are all important here. All three would suggest to me that Gold’s Yearly Cycle Low is very close but I don’t really want to see much more sustained downward price action. A spike down perhaps but we also want to see a trend change, preferably, an intraday reversal.
My first chart shows that this time of year has hosted Gold’s last few YCLs. Sentiment and Time point to bottoming but Price is key and my 2nd chart shows that the current 62% Fib retrace is still bullish in the context of a longer Bull Market. From Price perspective, getting back above 1200 is important and above the 330 daily EMA at 1215 is critical as well. My last chart on GDX shows it is near critical support as well and is forming interesting looking divergences on the CCI, MACD and Slow Sto.
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