Gold bull correction: Not an if, but when
Technical analyst Jack Chan charts indicators that confirm both the gold bull market and an impending correction.
Our proprietary cycle indicator is down.
We are short GLD with a tight stop.
As long as the dollar continues to consolidate, the expectation is a bullish breakout.
The euro is inverse to the dollar, and the current consolidation may seem like eternity to short-term traders, but the previous consolidation lasted much longer before breaking down.
A bull market in gold and silver has been confirmed, but no bull market is sustainable on a nonstop price spike. Therefore, it is not if, but when, a correction will begin. Bull market corrections can be very sharp but short-lived; therefore, the next cycle bottom could be an excellent entry point.
Meanwhile we are short GLD with tight stops.
Jack Chan is the editor of simply profits at www.simplyprofits.org, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the U.S. dollar bottom in 2011.
Source: Jack Chan for The Gold Report
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Charts courtesy of Jack Chan
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