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The Chart of the Day!

Commentaries & Views

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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Precious Metal Charts

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