Gold's Reversal Of Fortune Is About To Hit Hard (Technical Analysis)

(9min)

Summary

  • Gold has surged significantly in the past 15 months, outperforming the S&P 500. But, can the outperformance be sustained?
  • Recent parabolic spikes in gold futures portend a potential sharp reversal. The smoke is clearly seen.
  • Gold futures remain in a long-term uptrend, but sharp fear-driven surges aren't sustainable.
  • Investors who bought into gold before the FOMO spike should consider taking at least some positions off.
  • I explain why the time for dip buyers looking to capitalize isn't timely yet. Patience is very much needed right now.
  • Looking for a helping hand in the market? Members of Ultimate Growth Investing get exclusive ideas and guidance to navigate any climate. Learn More »

Gold Bars & Sitting on Financial Chart Background

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Can Gold Really Sustain Its Recent Gains?

When I last penned my gold sector update in January 2024, I highlighted that the asset class is on the verge of a “major breakthrough.” And it indeed broke through with

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  • We told members that the S&P 500 likely bottomed in October 2022.
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This article was written by

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JR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP.

He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks.

He focuses on identifying growth investing opportunities that present the most attractive risk/reward upside potential. His approach combines sharp price action analysis with fundamentals investing.

He tends to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities.

He runs the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. He focuses on ideas that has strong growth potential and well-beaten contrarian plays, with an 18 to 24 month outlook for the thesis to play out.

The group is designed for investors seeking to capitalize on growth stocks with robust fundamentals, buying momentum, and turnaround plays at highly attractive valuations.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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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