Is Gold Ready for Blast Off?
Is Gold Ready For Blast Off?
The one thing about the Market we all know VERY well…. it moves… but that movement isn’t restricted to stocks (some of you 1 dimensional’s may be surprised to hear this), and there are heaps of areas that many simply don’t know where to look.
One area that’s often neglected is the commodities market, and when 1 area of the market begins to show signs of weakness, there will be other areas that demonstrate strength.
At this exact moment in time, Gold is moving, and it’s moving well.
Lets look at the chart
As we can see, it has broken out above its 2013 Resistance, and for those that like Gold as a Hedge, or for those that are looking for a bit of safety, gold is looking increasingly attractive at the moment.
Why is Gold Breaking Out a Big Deal?
It’s pretty simple, if we take the view there’s much uncertainty within the current overall market (Trade Wars / Iran Conflict and every other news event the media spew out at us), and if we understand the market is 1 giant game of psychology, it makes sense to me that a mass rush of Gold buyers simply means that Investors are nervous and the demand for Gold is increasing
Through those nerves and demand, price is now providing ample opportunity to the shrewd Technical Analyst, and as we can see, breaking out above a base dating back 5 Years, certainly isn’t a bad thing, and given there’s a good $500 Upside potential… it probably meets a lot of risk:reward propositions out there… and it does seem that this is where the smart money is looking (which is why I’m looking).
Where Should You Look?
Well, you could buy physical gold, that’s certainly an option… the other plays are to perhaps investigate the top performing ETF’s and find 1 that meets your requirements & rules… perhaps also looking at Options Contracts and having a clear risk defined trade, or perhaps finding the Individual Gold companies that are likely to move in the near term - there’s lots of ways to play it depending upon your own individual risk tolerances etc.
I for one will be doing my due diligence over the weekend… and will be looking to identify the strength.