Gold and commodities
The Gold market is at a very important juncture. Is the 100$ move north in January the start of a new impulsive wave or merely a corrective wave preceding further downside.
At present the daily view shows a Gartley in process and from that we should see a selloff to at least 62% of the upswing. The G222 is shown in the first chart and the second shows the target.
If the Gartley pattern should fail then that would be very positive for Gold and add to the case that the bear trend in Gold is complete and that the treble bottom shown on the third weekly chart is holding. The Macd is showing bullish normal divergence which adds to the evidence of a bottom.
Those holding Gold shares on a long term view should give the Gold market the benefit of the doubt and hold a bit longer.
Traders should watch very carefully. If this bottom can hold there can be a massive move in marginal Gold stocks.
All commodities look pretty much the same including the softs of Soybeans and wheat. All have had protracted bear markets but still precious little confirmation of a turn.
The oil market is still on the way down but sitting on long term support that’s been in place for many years.
Please remember that a long and tough bear market is a pre requisite for a strong bull market in the future.
I am watching BIL for an entry but it’s still early. In the UK there are dozens of oil stocks both large and miniscule that are worthy of attention.
It’s a very exciting time in commodity related stocks. That’s an insight that’s missing from the popular debate.