10/19/15

Outlook for gold

 

Long-term outlook. Since May 2011 I have been writing in The Peter Dag Portfolio that gold had peaked.

Two reasons. The first one - GLD spiked with heavy volume. Second reason - gold is a metal, a commodity. My outlook for commodities has been "down" because of the weak global economy and when the economy is weak commodities are weak.

Near-term outlook. I love to see the patterns as in the above chart. Heavy bursts of volume with rising prices is an inevitable a near-term top. See for instance what happened August, May and January 2015. The 200dma represents also an important resistance.

But heavy volume with a sinking prce suggests a near-term bottom.

George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977

Author, Profiting in Bull and Bear Markets


Disclaimer. The content on this site is provided as general information only and should not be taken as investment advice nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.

Subscribe now and learn "EASY WAYS TO BEAT THE MARKET WITH ETFs". Several portfolios back-tested from 2000 are shown in the subscribers' area on our website (www.peterdag.com) when you subscribe. Total returns, annualized returns, maximum losses during the period, and number of transactions are shown for each portfolio. The rules are easy to follow and you will find them in the appendix of each issue of The Peter Dag Portfolio. These portfolios are provided as a service to our subscribers.

No comments: