Gold Daily Chart Review

In the face of a good jobs report gold could not hang onto its support, but at $1200 we may get close to another potential support base.   From the “B” wave bottom gold created  one ugly looking rally, that could fit into a big bear market rally. If that were the case gold stocks would be dropping like a rock as well. Contrarian indicators would also be flashing a sell signal, but that would’ve happened back in June of 2016.

Gold is still plunging as I post, and we would be getting closer to a potential H&S base by the time gold hits that $1200 price level.  I could see a bigger bearish gold picture if insiders of gold companies are actually selling, but  this is not the case as it would be pretty public news when it happens.  Insiders do not buy their own company shares on a whim, and they sure don’t sell out a  month or two later. They will hold for many years before they think that they have to sell. Steven Jon Kaplan does an excellent job in tracking gold stock insider activities. He also tracks fund flows in and out of gold stock related asset classes as they are buying signals as well.

Longer term I’m bullish until gold soars well past the $1375 price level, and gold stocks have also soared past their respective 2016 peaks.