Gold - breakout or fake out?
This week gold took out the key $1257 level after several attempts and closed the week at $1266.
I've been in this gold market for 18 years and I believe I have a good handle on the price action.
It looks to me as if the bears are having a harder time pushing it down.
After early May's blood bath gold has responded nicely.
While every resistance level will be defended aggressively it does look like gold is ready to move higher, with the $1300 level squarely in sight.
Do not let these gold to the mooners and pumpers deceive though.
Gold is not going to $5000 anytime soon.
There are a lot of carnival barkers out there making all sorts of ridiculous calls.
I've heard it for years.
The $is going to collapse, gold is going to $5000, silver is going to $200
On and on it goes.
The latest call is Bitcoin is going g to $10,000
One YouTuber is calling for $1 million bitcoin.
There's also a lot of talk about a web bot that supposedly got the bitcoin move right.
Complete nonsense.
Here is what I am seeing regarding gold...
The downward trend line that has been in place since 2011 is being threatened yet again to be taken out.
Gold has tried and failed several times to take out this hard resistance.
It needs to take it out here or else we could see more downside.
It does look to me that it wants to bust through this level and stay there.
If that is the case we can expect to see $1300 taken out.
My long-term target has been $1340 for many years now.
This is the area we need to take out.
If you have no exposure to gold I suggest you pick up some physical gold.
If you have been in this market since the beginning of the bull market from 1999 now is not the time to bail, but to continue to exercise patience.
Silver, which has been decimated will ultimately follow gold.
Bitcoin is seeing a long overdue and healthy correction.
It looks like a good time to pick up more coins.
Regarding a June rate hike, it looks like the FED is still going to go through with it.
I don't think they have any choice.
However, gold looks like it has already priced it in.
I made a bet with a friend of mine back in January that gold would get to $1325 by end of June.
I don't know if it will get there, but after this past week I believe it has a shot.
It might come up a little short.
Hopefully gold can pop its head above $1325 and I will win the bet, a free dinner, and see gold firmly in a bull market. That would be a win win.
So, I do not think this is a fake out. I think this is the real thing.