Caution: The Gold Correction Continues – Jack Chan
Technical analyst Jack Chan charts the latest moves in the gold and silver markets, noting a bull market has emerged for the U.S. dollar.
Submitted by Streetwise:
Our proprietary cycle indicator is down again, confirming price action.
The gold sector is on a long-term buy signal. Long-term signals can last for months and years and are more suitable for investors holding for long term.
The gold sector is on a short-term sell signal. Short-term signals can last for days and weeks, and are more suitable for traders.
Speculation has now dropped below the level of the previous bottom.
The trend remains down.
USD is in a bull market since our major buy signal in 2011. A strong dollar is not friendly to the precious metals.
Silver is on a long-term buy signal.
SLV is on a short-term sell signal, and short-term signals can last for days to weeks, more suitable for traders.
Summary
The gold sector is on a major buy signal. The cycle is down, and the trend is down. The correction continues. Caution is advised.
