Gold Miners ETF (GDX)

[DiscoverGold]

:::: Gold for 2018 - Are We Ready Now? ::::
By: Marty Armstrong | January 3, 2018

The Gold closing at 1309.30 was technically bullish. It did elect a very minor Yearly Bullish Reversal we have at the 1307.80 level. However, the Major Yearly Bullish stands at the 1432.50 level, so this provides an indication that gold is preparing for a rally, but we are not quite there just yet for a breakout.

This 2017 closing indicates that we may now test the upper bands of resistance during 2018 coinciding with a test of support in the dollar. Our projected resistance for 2018 stands at 1449.73 with closing resistance for 2018 at 1393. Ideally, to create at least a reaction high means we would need to exceed 1377.50 intraday, which is the 2016 high. We did close above the Downtrend Line from the 2011 high to the 2016 high, which stood at 1268.26. This once again indicates that gold is in a near-term reaction phase.

Everything will turn on 2019. Since the low now in 2015 intraday, reactions max-out at 3 time units. This implies that gold should exceed 1377.50 here during this new year 2018. At the very least, 2018 must close above 1393 to imply that the 2015 low will hold as a 3-year reaction low from the 2012 high-close rather than the 2011 intraday high.

Technically, we should see gold rally to at least exceed 1377.50. The resistance will stand at 1393, 1432, and 1449. It remains possible that the low is in place. This depends upon how bad things unfold in Europe for the support in gold is really the retail market. People in Europe are already hoarding cash. We may see this begin to move to gold in Europe.

We will be doing a Special Report for the Metals and review gold in various currencies.

• DiscoverGold

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