The following Special Report was published earlier to FindLeadingStocks.com members:
Special Report: A Closer Look At Gold
Gold Breaks Out of A 7-Week Downward Trendline
Gold broke out of a 7-week downward trendline on Friday and is adding to those gains today. It is also trading between its 50 (near term resistance) and 200 (near term support) dma lines. Stepping back, it is important to keep in mind that gold is still in a bear market and trading -32% below its record high.
Next Move Wins- Double Bottom Pattern Continues To Form:
Gold is also in the process of forming a very large double bottom pattern. The double bottom will be confirmed if gold trades above the middle of its “W” pattern (1434 area). Conversely, the bottom pattern will be negated if gold trades below 1179 (support/low of the pattern). Until either level is breached- gold is still basing and one should expect this wide-and-loose action to continue. Eventually, gold will enjoy large moves again… and when it does we are going to be all over it.
Here is a closer look at gold’s monthly, weekly and, daily charts. As you can see, each chart tells a very different story. Interestingly, silver continues to under-perform gold (which is bearish since they are highly correlated and usually move in tandem).