Did I mention that I'm uber ultra mega bullish on gold? This market is positioned to EXPLODE higher! Welcome friends, to this update analysis on the GLD — the ETF that tracks the gold market! Let's get right to it.
Looking at the weekly GLD chart, you can see that after gold produced it's all time high in 2011, it entered a bear market that corrected until late 2015. Then, a wide V bottom was formed, and GLD has been rising out of the V ever since. In the most recent months, GLD has been forming a big bull flag, just below the breakout zone, around the 38.2% retrace. The fact that we've formed a bull flag just below that level, signals that gold is ready to blast off, and as of today, the bull flag is beginning to break out to the upside. We are now within striking distance of the breakout zone on the GLD chart, and it makes perfect sense, since there is growing pressure in the equity markets. Traders are moving into the safe haven, as the volatility and fear begin to increase in the equity markets.
I want to draw your attention to the blue zone between the 382 and the 236. You can see that on the way up, the price action was rapid, and the move down was even more rapid. What that shows us, is that there isn't much support or resistance in this zone. So if/when the GLD breaks out into that area, it could produce a powerful rally higher, that causes the GLD to surge into the 236. The technical indications show that the gold market has formed a long term bottom, and a breakout above 130.35 should turn the afterburners on. If we do see a breakout above that level, I think that we could eventually get a retest of the all time high.
I don't generally focus too much on fundamentals, but there are fundamental reasons to be bullish on gold right now. Treasury Secretary Mnuchin has recently expressed some hawkish views on the dollar, the yield curve is flattening, and the US equity markets are facing a major correction. Couple those things, with an evident trade war, which we appear to be engaging in, a global debt crisis, and increasing volatility, and you have a recipe for higher gold prices. For now, let's watch this breakout above the bull flag , as we rally up to the breakout zone. This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
@MagicPoopCannon Can you let us know which gold you invest in and what platform? For noobs we don't even know where to start in terms of where to go to buy gold if we were considering it etc... would be helpful. Thanks!!!
UnknownUnicorn1315561
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@CryptoBling99, He is analyzing SPDR GOLD TRUST ("ETF that tracks the Gold market") so this is what you should buy when you go by this chart. You get it from every broker.
btctrillionaire
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@mammit46, it's going to be the same chart for the physical commodity itself and any ETFs, funds, etc that track the price of gold. Buying the ETF is easier, but buying and hodling physical metals will eliminate counterparty risk.
UnknownUnicorn1315561
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@CryptoBling99, for example on Etoro
SatoshiKnows11
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@mammit46, How about on like scotttrade/TDameritrade? Just within a regular (or Roth) IRA etc?
MagicPoopCannon
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@CryptoBling99, I own physical gold and silver bars, and I own options on the GLD. Particularly, I have a stake in the Jan 20 150 calls. You can go to apmex.com or other gold and silver sellers if you want to buy physical metals, or you can trade stocks, options, and futures on things like the GLD, SLV, GDX, and many others.
Mycomorel35
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@CryptoBling99, Considering the current economic environment I only hold physical as I don't believe paper assets will hold up if China challenges the legitimacy of the Comex to be able to place accurate value on price. It's sorta like Crypto do you leave your long term hold BTC on an exchange or do you store it on a private ledger. No question you can play in the paper market as a trader but as an investor physical possession is the only way for me. As for new traders why trade PM ETF's when you can play crypto. Crypto has larger volatility and much lower capital requirements it's a much better entry point for new traders. But that's just my opinion.
prefabsprout
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ya that's interesting but could u pls update btc cause WTF??
BitcoinSector
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100% on POINT! 50-80% Profit in 48 Hours!
INFINITYWARS1
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Own Physical ;), GLD has only contributed to suppressing the Gold price lol. I agree Gold Should be many multiples higher once the Bond market begins to sell off