The 2008 congestion zone is currently being tested for the third time. This is important because the three taps and out heuristic is designed to remind us of the cyclical nature of supply and demand relationships.
With that said, it is so easy fall victim to fear with so many yelling fire in a crowded theater. These are the times when the media outlets inflect the greatest damage to discipline and portfolios.
The colored zones below price illustrates strong support for the gold stocks regardless of the depiction of fear. Weakness into the minor cycle low is hardly bearish for the gold stocks. Decreasing energy into the zone and minor cycle date would provide a bullish setup for gold stocks. When time is right, price will follow.
Gold Miners Index ETF (GDX):
0 comments:
Post a Comment