Metals Buying Opp?
Looks like the market went a day earlier than I had thought. Gold looks to be on day 4 of it’s 7 day cycle which is typically a half cycle low. If you are looking to go long, buying here with a stop at the Jan 11th low is a pretty good low risk buy. If it rolls over the Jan 11th low then the longer term cycle has yet to be printed, but so far it seems to be holding up well.
GDX does look fairly week though, so you may want to stop out if it breaks Jan 12th low as it seems to have bottomed a day later than Gold. Typically I find miners lead, so this could also be a signal miners are leading down… caution still advised. I will be waiting for the 7 day low to make a decision (end of this week).
Thanks, Gus
Glad I decided to wait, sorry for anyone that used the bullish view to buy today. Would suggest selling as we are now in a failed 7 day cycle and have have 3 – 4 days to go before finding a short term bottom.