Precious Metals Sector is on Major Buy Signal 2018


Technical analyst Jack Chan charts the latest movements in the gold and silver markets, noting buy signals for both gold and silver at the close of 2017.


Our proprietary cycle indicator is up.




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.



The breakdown on USD this week is supportive to overall higher metal prices in coming weeks.




Silver is on a long-term buy signal.




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 bouncing back sharply from the lowest level in years.

Summary

The precious metals sector is on major buy signal. The cycle is up, suggesting that the multimonth correction is now complete. COT data is supportive for overall higher metal prices. We are holding gold-related ETFs for long-term gain.

Jack Chan is the editor of simply profits at www.simplyprofits.org, 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.

Charts courtesy of Jack Chan

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