Wednesday, January 29, 2014

Bullion – still in an up-trend:

On a past post on Monday, November 25, 2013, “Gold and the A-B-C Correction” I displayed a 15-year gold chart and wrote, “Bullion – The long term trend in bullion is still up as displayed in the 15 + year plot to the left (insert). Currently the 12-year primary trend line is at the $1200 dollar level. This important level was tested during the (C) corrective wave low of June 2013 when bullion bottomed at $1183. The current wave of selling should not violate the June 2013 lows – see support from the major producers (above).”

Ok - so now let us revisit the same chart - now updated to January 29, 2014. I am using the same trend lines with a semi-log scale. Don’t forget – you can’t place trend lines on a linear scale if the price doubles. Observation; bullion seems to have completed the long bear phase as displayed in the A-B-C corrective period. All we need now is for the gold complex is to confirm the new bull and begin to operate inversely to falling stock markets. 


Anonymous said...

Is the sp 500 and tsx in full correction mode? Or are we still in a long bull market? said...

Hello shy guy

I am worried - see the newer post

I do however like the gold stocks

Bill C