The Pivot Points To Watch For Gold

Posted by Wall Street Window

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Gold is consolidating below its long-term moving averages in a stage one base in what I believe will lead to a huge breakout into a new bull market.

Now many people think gold is going to fall to 800 or 900 or 1000 an ounce. In stage one bases after a bear market no one believes anymore and almost everyone is simply asleep and no longer paying attention.

But we will not make that mistake.

In the above video I explain why the commitment of traders reports are showing us that no big gold crash is coming.

Without a crash to new lows in gold there is no reason to get so fearful about gold anymore.

That means you have to be looking and ready for the next breakout.

The key resistance points to watch for gold now are its 200-day moving average currently at $1,227 and the $1,300 level.

Once gold goes through its 200-day moving average I believe it will be clear to us that a new bull market is beginning, but it won’t be until $1,300 is broken that such a reality will be accepted by most people.

When it comes to mining stocks the key level is now the 200-day moving average for the HUI currently at 192.85.

It could all happen at any moment, but my best guess is that it will still take a few more weeks for this to occur.

We are in a transition year for many financial markets. Gold and precious metals are not the only commodities poised to begin new bull markets, but they are among the most important and we will keep our eyes on these key levels.