Technical analyst Jack Chan charts the latest movements in the gold and silver markets, noting an upturn in the cycle that might indicate the end of a multi-month correction.
Our proprietary cycle indicator has turned up.
ARCA Gold BUGS
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 buy signal. Short-term signals can last for days and weeks, and are more suitable for traders.
Speculation is in bull-market values.
Prices are rallying from the level of previous bottoms according to open interests.
Silver is on a long-term buy signal.
iShares Silver (NYSE:SLV)
SLV is on a short-term buy signal, and short-term signals can last for days to weeks, more suitable for traders.
Speculative longs are at the lowest level in two years.
Bottom Line
The precious metals sector is on major buy signal. The cycle is up, suggesting that the multi-month correction is now complete. COT data is supportive for a bottom in metal prices. We are holding gold-related ETFs for long-term gain.