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Even with last week’s selloff, gold is up more than 3% since I last wrote about it in May. And it still looks to have plenty of room to run…
If you’re among our thousands of new members, you might not know that I have been bullish on gold for a while now.
I base my sentiments on the signals I’ve seen over the last few months. So, while I keep one ear on the media to know what people are talking about (and gauge my own emotions), I make my trading decisions based on evidence.
Three months ago, the media tried to get us all worked up when gold dropped 9 days in a row. I told my readers then that historically, this was a good buying opportunity. And even with the drop-off last week, gold is trading 5% higher.
I continue to like gold. Let’s review the signals that are keeping me bullish…
Gold triggered a new Stock State Indicator (SSI) Entry signal in April and continues to trend higher. Here’s the SSI chart on gold.
The volume-at-price (VAP) chart shows that gold recently broke through strong resistance at the $1260 level. It’s not surprising to see gold move back towards that level as that should now be a strong line of support.
We’re still not seeing excessive bearishness from the commercial gold producers. That bodes well for more upside.
I first published this time-cycles forecast three months ago. You can see how the prices have tracked the gray cycles forecast since then in the highlighted yellow section.
Overall, these collective signals tell me that gold is still primed to make a major move to the upside. Any downward moves could be good opportunities to enter into gold or add to your position.
As always, the TradeStops way is to know your risk and make sure that you’ve got the right position size for you. The signals tell you what to consider buying, the tools tell you how much risk you should take.