Gold Miners ETF (GDX)

[DiscoverGold]

Jack Chan: Gold Price Exclusive Update
By: Jack Chan | May 21, 2022



Our proprietary cycle indicator is down, but bottoming.

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 on a new long term BUY signal, suggesting that the correction since 2020 has been completed.



GLD is on short term sell 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 at level of previous bottoms.

Expect overall higher prices.



Our ratio is on sell signal, but a new buy signal is imminent.



Trend is up for the dollar.



$HUI is testing support.



Gold is testing support.



The multi year “cup with handle” is in progress.



The sharp sell off of the past few weeks and a firm bounce this week has resulted in a new price pattern: an inverse head & shoulder.

Summary

Long term – on BUY signal.

Short term – on mixed signals.

Gold sector cycle is down but bottoming.

Speculation has reached level of previous bottoms, expect overall higher prices.

$$$ We are holding a core position and will continue to accumulate positions.

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