GOLDBUGS AMEX Goldbugs Index (GOLD)

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Jack Chan: Gold Price Exclusive Update
By: Jack Chan | July 24, 2021

Our proprietary cycle indicator is DOWN.



To public readers of our updates, our cycle indicator is one of the most effective timing tool for traders and investors. It is not perfect, because periodically the market can be more volatile and can result in short term whipsaws. But overall, the cycle indicator provides us with a clear direction how we should be speculating.

Investors

During a major buy signal, investors can accumulate positions by cost averaging at cycle bottoms, ideally when prices are at or near the daily 200ema.

During a major sell signal, investors should be hedged or in cash.

Traders

Simply cost average in at cycle bottoms when prices are at or near the daily 200ema; and cost average out at cycle tops when prices are above the daily 50ema.



Gold sector is now on a new long term SELL signal.



GLD is on short term buy signal.



GDX is on short term sell signal.



XGD.to is on short term sell signal.



GDXJ is on short term sell signal.

Analysis



Speculation according to COT data is now in bear market values.



Our ratio is on sell signal.



USD has a confirmed double bottom.

A strong dollar is not friendly to the metals.



Gold broke support, confirming the $1900 level as a “failed recovery top”.

When resistance is established, prices look for support.

Major support for gold is now at the weekly 200ema, just below $1600.



Similar to gold, $HUI also broke support, with next support at the 200ema, around 240.



USD could be in the process of a “cup with handle” pattern.



$HUI broke down from the flag this week, and again consolidating in a new flag.

Summary

Long term – on major SELL signal.

Short term – on mixed signals.

Gold sector cycle is down.

$$$ We closed out all of our positions with good profits, and stand aside for now.

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