One of the best technicians on the planet, J.C. Parets, just laid down a tour de force post on gold & silver on his premium blog site. J.C. is bullish on gold long term and he sees two primary scenarios over the near term which he has allowed me to share with you here:
Here is a shorter-term look at the recent consolidation since July. Up to this point, Gold has been in a sideways to descending range above 1300. This was resistance in early 2015 and once again this year before breaking out in June:
Momentum is in a bullish range since it has not reached oversold conditions. So that’s a positive. I think there are two potential outcomes here and both are bullish with a target above $1500. We could break out from here above this downtrend line from the July highs:
The second possibility, and what I would prefer as a Gold bull would be a brief break below 1300. As long as during this decline momentum stays above oversold conditions, this would be extremely constructive. That brief break under 1300 should knock down sentiment enough to catapult Gold to new highs and eventually up above 1500 in a few months.
To read J.C.’s gold & silver post in its entirety as well as to gain access to all of his premium content you can subscribe for a 30-day free trial here.
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