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Gold - Ready To Buy

Nov. 22, 2015 4:39 PM ETGOLD12 Comments
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In my previous article "Gold - Bottom Is Here. Ready To Switch Gear " published on November 7 here, I indicated that we may need to wait for 10 - 15 days before moving out of its oversold condition to buy.

Now it is in day 11 of the gold base building stage. Let us find out what is current situation:

Current chart pattern is quite similar to what we saw in gold previous run in July 24 - August 24.

Gold stayed low and built its base for 13 days from July 22 - August 7 before breaking out. The run lasted 11 days and topped on August 24.

Now we are in base building stage day 11 starting from November 6.

The best time to buy is

1. MACD crosses over zero

2. STO crosses over 20;

3. RSI crosses over 30.

Now RSI is already at above 30;

MACD is at -2.488 but it has been moving up and very close to see zero crossing.

STO is at 17.27, also moving up.

All technical indicators showed that another gold break-out is under way.

I like magic number 13, which is also a Fib number (2->3->5->8->13->21->34->.... )

Of course, history may not repeat. Invest with your own risk.

Analyst's Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in NUGT, GLD over the next 72 hours.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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