Technical analyst Jack Chan examines the charts after Friday's spike in gold:
Gold stocks remain on short-term sell signal despite the sharp spike on Friday.
The U.S. dollar pulled back sharply on Friday and is now on a short-term sell signal. The dollar must not break below the May low to maintain the bullish outlook.
Gold sector had a single day price spike on Friday. Let's see if there is any follow through buying this week to indicate that the pullback is complete.
This article was contributed to The Gold Report by Jack Chan.
Jack Chan is the editor of Simply Profits, established in 2006. Jack 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 US dollar bottom in 2011.
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All charts courtesy of Jack Chan.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.