Gold sector as represented by HUI is on a long term sell signal.
Long term signals can last for months and are more suitable for investors.
The Gold sector, as represented by $HUI, is on a short term buy signal.
Short term signals can last for weeks and are more suitable for traders.
COT data on gold is supportive for overall higher prices
COT data on silver is also supportive for overall higher prices.
The GDX trend is firmly up.
Upside resistance for GDX is $25.
Gold stocks continue to outperform during the current up cycle.
Gold is lagging behind gold stocks as the multi-year bottoming pattern continues.
Summary
- Long term – on sell signal.
- Short term – on buy signals.
- Gold sector cycle is up, and the correction has found support at the 50/200ema.
- COT data is supportive for overall higher metal prices.
- Maintain positions and stay the course.
Disclosure: We do not offer predictions or forecasts for the markets. What you see here is our simple trading model which provides us the signals and set ups to be either long, short, or in cash at any given time. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets. Trade at your own discretion.