• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Decisive Long-Term Breakout for Gold
Stock

Decisive Long-Term Breakout for Gold

by March 15, 2024
by March 15, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

This month the SPDR Gold Shares (GLD) broke out to new, all-time highs. This was a significant long-term move, which we will discuss when we get to the monthly chart. Of more immediate interest is the fact that sentiment is still bearish, which bodes well for a continued advance. We gauge sentiment based upon whether closed-end fund Sprott Physical Gold Trust (PHYS) is selling at a premium (bullish sentiment) or discount (bearish sentiment). Currently, PHYS is selling at a discount to NAV.

The weekly chart gives a better perspective of the significance of the breakout, which was decisive. The overhead resistance has held GLD back for more than three years, and has now become support.

But the monthly chart shows that it has been a much longer wait than three years. Gold made all-time highs back in 2011, following which it declined nearly fifty percent. It finally recovered to new, all-time highs in 2020, but it has been stalled until this month. Practically speaking, gold investors have been waiting about 13 years for this encouraging move. The positive side is that gold has established a solid high-level base at around 2,000 to provide future support. Also note how bullish sentiment got (a premium of about +14%) during the parabolic advance on the left side of the chart.

Investing in gold presents some difficulties that must be considered. Disclaimer: This is information, not a recommendation. If you buy physical gold, you have to have a safe place to store it. A safe deposit box can be accessed/frozen by the government, and an adequate safe is expensive, difficult to move, and entails some vulnerability. Some ETFs, like GLD, do not actually own physical gold. An alternative is iShares Gold Trust (IAU), which is a closed-end fund that owns physical gold. Sprott Physical Gold Trust (PHYS) is similar to IAU, but it is a foreign entity based in Canada. Consider the implications of all options available.

Conclusion: Gold’s recent breakout was a long time coming and appears to have positive long-term implications. Also, the long period of consolidation has created an impressive base of long-term support.

Learn more about DecisionPoint.com:

Watch the latest episode of the DecisionPointTrading Room on DP’s YouTube channel here!

Try us out for two weeks with a trial subscription!

Use coupon code: DPTRIAL2 at checkout!

Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin

(c) Copyright 2024 DecisionPoint.com

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.

Helpful DecisionPoint Links:

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking

Bear Market Rules

You Might Also Like
  • The Top Candlestick Pattern For Entries
  • The Best Five Sectors, #2
  • Rules-Based Money Management – Part 4: Security Ranking Measures
  • Last Week’s Pullback is a Buying Opportunity!
Share
0
FacebookTwitterPinterestWhatsapp

previous post
SPX Options vs. SPY Options: Which Should I Trade?
next post
Spot The Warning Signs of Bankruptcy!

You may also like

Three Technology Stocks in Make or Break Scenarios

August 28, 2024

Is This a Federal Open Market Committee Shake and Bake?

July 28, 2023

This Week’s Earnings Watch: Turnarounds and Momentum Plays

June 23, 2025

NVIDIA’s Stock Split and Potential Correction

June 7, 2024

Think Really Hard About Who You Want On Your Team

December 16, 2023

Wynn Resorts: Is Now a Good Time to Trade the...

June 23, 2023

Week Ahead: NIFTY Stares At Crucial Support; RRG Hints At...

February 8, 2025

Week Ahead: Markets Approaches Union Budget In A Bruised State;...

January 28, 2023

Dow Jones and S&P 500 Close At Record High —...

January 20, 2024

From Summer Doldrums to Year-End Surge: How to Profit from...

May 30, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • How I Triple My Returns With 3x Leveraged ETFs!

      July 10, 2025
    • Want Faster, Lower Risk Trades? Use This Setup

      July 9, 2025
    • The Seasonality Trend Driving XLK and XLI to New Highs

      July 9, 2025
    • Small Caps Are Rotating In — Here’s Why It Matters

      July 9, 2025
    • Amazon extends Prime Day discounts to 4 days as retailers weigh tariffs and price increases

      July 9, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,630 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,919 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,607 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,576 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,449 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,167)
    • Investing (538)
    • Stock (2,661)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • How I Triple My Returns With 3x Leveraged ETFs!

      July 10, 2025
    • Want Faster, Lower Risk Trades? Use This Setup

      July 9, 2025
    • The Seasonality Trend Driving XLK and XLI to New Highs

      July 9, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,167)
    • Investing (538)
    • Stock (2,661)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Textbook Double Top on Silver (SLV)

    May 31, 2024

    Emerging Market Bond Fund ETFs Look...

    July 15, 2023

    More from Mish’s Outlook 2024 —...

    December 26, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here