The Chart of the Day!
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
A trend usually begins in stealth form. It meanders along while only a few people are paying attention. Then, suddenly the trend picks up speed and people begin to pay attention. This is the case with today’s ‘Chart of the Day,’ a chart that focuses on a trend that began in September.
Featured is the chart that compares gold mining stocks to the stocks in the S&P 500 index. Notice how the trend began to favor gold stocks in September. In October we saw an acceleration of the uptrend, followed by consolation. On December 4th we notice a 4% jump off the 50 Day Moving Average. The chart pattern has become and ARAT (Advancing Right Angled Triangle). We’ll be watching for a breakout at the blue arrow. This will be very bullish for gold and gold stocks – bearish for the stock market, as investment funds will be switched from the stock market into precious metals. The supporting indicators are positive.
DISCLAIMER: Please do your own due diligence. Peter Degraaf is NOT responsible for your trading decisions.