Gold for the brave
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Physical gold is timeless money, but for the brave speculators, there are times whereby getting exposure to the gold price via gold mining stocks or mining stock exchange-traded funds (ETF's) may be an attractive proposition.
For the truly brave, perhaps leverage to the gold price via owning shares of a mining company isn't enough, and a further leveraged ETF is the trading instrument (not an investment) of choice. The below chart is one of a double leveraged gold miner ETF shown on a weekly timeframe. The yellow highlighted areas are zones whereby price stretched far beyond the 200-week average and needed to "snap back"; will the current low play out as it has over the last two years?
The blue arrows indicate points of interest: The first shows a negative divergence on the weekly stochastics compared to price (sell signal), and the second shows a wide open gap that could just be waiting for the price to eventually fill.