Gold sector as represented by $HUI is on a long term buy signal.
Long term signals can last for months and are more suitable for investors.
Gold sector as represented by $HUI is on a short term buy signal.
Short term signals can last for weeks and are more suitable for traders.
COT data shows speculation is now at levels of previous tops.
COT data on silver is favorable for overall higher prices.
GLD (NYSE:GLD) – major resistance at 170, a long way away.
GDX (NYSE:GDX) – resistance at 30, then 50.
VanEck Vectors Junior Gold Miners (NYSE:GDXJ) – resistance at 50.
XGD.to – resistance at 17.
iShares Silver (NYSE:SLV) – resistance at 20.
Summary
- Long term – on buy signal.
- Short term – on buy signals.
- Gold sector cycle is up.
COT data on gold is now at levels of previous tops but favorable for overall higher silver prices.
The divergence as noted last week was negated with this week’s price explosion. Our hedge was not executed.
However, if the sector cycle turns down in coming weeks with prices at or near these resistance levels, a hedge will be necessary to lock in profits and allows us to sleep better at night during a substantial correction.