Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | 

Commentary : Gold Stock Review : Markets : News Wire : Quotes : Radio : Silver : Stocks - Main >> News >> Story  Disclaimer 
Latest Headlines

Ying and Yang
By: T. Ferguson

Globalization Faces Challenges
By: John Browne, Euro Pacific Capital

Silver Prices in an Exponential Financial System
By: Gary Christenson

GoldSeek Radio Nugget: Byron King
By: Chris Waltzek, GoldSeek Radio

Is the Fed Fix in for the election?
By: David Haggith

Why Do You Allow Yourself to Be Manipulated?
By: Avi Gilburt

Gold Market Morning: October-26-2016 -- Gold price consolidating higher!
By: Julian D. W. Phillips, Gold Forecaster

Gold Is The “Kardashian of Commodities” – Herbert & Keiser Interview Skoyles
By: Mark O'Byrne, GoldCore

Gold Seeker Closing Report: Gold and Silver Gain Almost 1%
By: Chris Mullen,

Broken Central Banks: 4 Quick Pix
By: Jim Willie CB


GoldSeek Web

Gold And The Investor’s Buy Point

 -- Published: Wednesday, 17 February 2016 | Print  | Disqus 

By: Justin Smyth

After gold’s incredible surge last week, it is now facing a critical test that will either prove or negate a new bull market in the yellow metal.  The gold ETF GLD crashed through the 30-week moving average  two weeks ago on 2-times average  weekly volume, then followed up that move with a surge last week on 4-times average weekly volume.  This explosive increase in buying pressure accompanied with a move above the 30-week moving average is the first ingredient to a new Stage 2 bull market.


The second and more important test for the transition from a bear market to bull market is a retest of the 30-week moving average that holds as support.  This confirms that prices are now trending higher and that the rally was not merely another bear market rally that failed at resistance.  The chart below marks this second ideal buy point B and notice that it occurs above the 30-week moving average.


Source:  Secrets For Profiting In Bull And Bear Markets

The best thing about buy point B is that it offers a lower risk, higher reward opportunity in establishing a position in a potential new uptrend.  By waiting for the pullback to the 30-week moving average, risk is reduced because the the moving average can be used as the line in the sand for taking a loss if the pullback fails to hold.

Contributing factors to a possible new bull market in gold include the fact that GDX also had a massive increase in volume over the previous two weeks.  This confirms broader based participation in the gold miners which will outperform gold when it moves back into a bull market.


The U.S. dollar is also threatening to break down into a Stage 4 decline from its current Stage 3 topping pattern.  Simultaneously the Euro is still holding in a Stage 1 basing formation and the Japanese Yen is in a new Stage 2 advance.

Despite this evidence the most important factor is the ability of gold to hold above the key long term moving average to confirm change in trend.

Justin Smyth, Next Big Trade

Twitter: @nextbigtrade

The views and opinions expressed are for informational purposes only, and should not be considered as investment advice. Please see the disclaimer.

| Digg This Article
 -- Published: Wednesday, 17 February 2016 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2016 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of, its affiliates or advertisers. makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, is strictly prohibited. In no event shall or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.