So it was 1 week ago that an article appeared in this space, talking about the gold sector’s still downbeat fundamentals (both sector specific and macro) and the likelihood of a rally for various reasons. What has transpired since? Why, a rally. The rally came along with short covering by the usual suspects who only use charts (the whole complex had pretty much broken down) as if the charts know all.
Speaking of charts, if I wanted to use my charts for hype as some do, I’d give grave warnings about the Rising Wedge in which GDX climbs (per a 15 min. chart). But I will not do that because you are big boys and big girls, you know how to make rational decisions and you know that these wedges are often put forth along with other patterns by TAs who want to transfix you with their ability to look at a chart, see a shape and then make something more of it than it is.
For instance the daily chart has the price above both the 50 and 200 day moving averages, approaching resistance at 23. It filled the gap down from late November and needs to make a higher high to the November high in order to get clear. Oh and, no wedge.
Casino patrons are welcome to see what they want and trade red and green lights all day. More and more though, the macro seems to be marching to a plan and staying in balance with said macro seems like the best advice, boring though it is. ←There he goes, not giving us a clear answer again! Well then, go read some other free site. And you know who you are. Casino patron.
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