On 18 Jun 2.09pm, I emailed to my Clients my latest post titled 'Will Gold continue to stay at Rest?'. Below is the full transcript of my write up:
'A body at rest tends to stay at rest.
In classical Technical Analysis we call it ‘Basing’.
A body in motion tends to stay in motion.
In classical Technical Analysis we call it ‘Trending’.
Mr Gold Market (GM) appears to be in a multi-year 'rest' mode as it has spent a good part of the last 6 years forming a huge base or 'Basing Pattern'. In Wyckoff Analysis (a branch of Technical Analysis), we call it a mega 'Accumulation Phase'.
In the last 2 weeks, gold is attempting to rally up to that important resistance zone again (1360 - 1380) where sellers came out in full force previously and bullish price action gets rejected for at least five times over the last 3.5 years.
However, consider my recent bullish intra-market insights here:
1. The GDX/GLD ratio is rising which means Gold Miners stocks are performing better than spot gold itself. (GDX = Goldminers Index / GLD = Gold ETF)
2. Gold Miners Bullish Percent Index just crossed 50.
3. Gold/Silver ratio currently stands at a 10-year high of 91. (some may attribute this to weak demand for silver as an industrial metal due to the trade war; this of course is arguable)
4. A potential breakdown in USD Index's multi-month Ascending Wedge (bearish connotations) will give a further boost to Gold price.
So while I can tell you the bullish 'set-up' is again ready for the Mr Gold Market to break past the resistance zone, unfortunately I can't tell you whether Mr GM will grab this opportunity or not. However, if Mr GM does take out this resistance zone and hold it authoritatively, it is likely this asset class* will once again be set 'in motion' and I reckon this is one gravy train that you do not want to miss!
Layman's Terms: The deal is not yet sealed with Mr Gold Market. However, once the said resistance zone is taken out authoritatively, don't forget to onboard this gravy train!
Drop me a line if you wish to know how to get exposure to Gold without using Futures or Derivatives instruments - there are many Goldminers and Gold ETFs that are listed in SGX, HK & US!
Thank you & Regards
Thomas Ng, CMT
Principal Trading Representative
*Whether physical gold is an asset is debatable as it gives no yield, but the top US goldminer companies pay an average dividend yield of 0.63%.
Chart: tradingview
Image: https://en.wikipedia.org/wiki/Isaac_Newton
#plsreaddisclaimer #chartforillustrationonly #gold #XAU #gold17jun19 #gold24feb19 #abodyatrest #abodyinmotion #basingpattern #megaaccumulation #wyckoff #wytant #livelongandtradewell #openaccounttoday #bitcoin25dec16'

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One such gold miner companies is CNMC Goldmine who manage to increase its gold production output for the past 3 quarters with the additional CIL plant.

Definitely will make a good turnaround story (vested at avg $0.21)


Reply to @luxcan : Bingo & congrats!! :)

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