Back in July, I alerted you to an imminent rally in gold that absolutely no one was predicting.
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I’d noticed an intriguing chart pattern was developing as gold’s Bollinger bands were compressing. Looking back over the brief history of this new bull market, every previous time the bands had “pinched” like that came right before a big price rally in the yellow metal.
Take a look at that same chart of gold and its Bollinger bands, updated for today’s values:
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The lower panel shows the width of the Bollinger bands, and I’ve used vertical red lines to mark the instances where that indicator bottomed. As you can see, in each case that came right before a big move higher in gold.
Also note that we had another chance to buy gold when the bands pinched in early September, after which gold rode the upper band higher.
Now that rally has lost steam over the last week and the bands are, just barely, starting to come together again.
The record of this bull market shows that the process of narrowing has taken anywhere from one to three weeks, so we could see continued price weakness — or at least range-bound trading — just a little while longer.
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As my friend Ron Griess of TheChartStore.com recently emailed me, in a bull market like this the best strategy is “to buy the dips.” This has been one of those dips.
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The bottom line: The window to get in before the next rally is closing quickly.
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Another Closing Window...
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On the subject of escaping opportunities, if you’re not already registered for this year’s blockbuster 50th Anniversary New Orleans Conference, you need to act now.
For one, the cut-off date for our room block is rapidly approaching. You don’t want to miss the opportunity to stay in our convenient host hotel, the beautiful Hilton Riverside.
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In addition, and perhaps most importantly, this is a secular metals and mining bull market.
Decades of experience proves that you want to be in New Orleans at a time like this, at the beginning of a multi-year bull run.
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So click on the link below or give us a call toll free at 800-648-8411 to learn more and register now.
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Brien Lundin
Publisher, Gold Newsletter
CEO, the New Orleans Investment Conference
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CLICK HERE
To Learn More
And Claim Your Place At
The 50th Anniversary
New Orleans Investment Conference
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CLICK HERE to watch interviews by Brien Lundin and Kai Hoffmann with many of today's most exciting junior mining companies on the
Gold Newsletter Youtube channel.
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