Technical analyst Jack Chan finds gold stocks are on a short-term sell signal and reveals an excellent entry point.
Gold stocks (via SPDR Gold Shares (NYSE:GLD)) remain on short-term sell signal, and if we are in a bull market, prices should find support at the 200ema (exponential moving average), which may be an excellent entry.
There is a divergence in place, and as we have often observed, such divergence can lead to a multi-week correction.
iShares Silver Trust (NYSE:SLV): We are short from 16.25 with stop now at break even for a free trade at worst.
We took a short position on SLV and will look for more set ups in the sector to take advantage of a multi-week correction now in progress.
About The Author: Jack Chan is the editor of Simply Profits, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the U.S. dollar bottom in 2011.
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