WILL GOLD BREAKOUT ABOVE $1360?

 


Precious Metal Investors (myself included) have been beaten down trying to trade these markets over the last 3-5 years. Are investors expecting a breakout? I bet there are fewer bulls now than during last April’s breakout attempt. If the masses aren’t expecting it – then, a breakout is possible.

 

Below are key levels in gold and GDX I’ll be monitoring closely throughout the week.

 

Is a major breakout possible? Sure – the same as last April. Will gold make it this time? Maybe- If so, then it could happen soon. Today’s close and the next 2-3 trading days are crucial.

If gold is about to breakout above $1380, it could happen soon. Closing above $1380 and then progressively above $1400 would register a decisive breakout win for long-term gold investors.

 

  • Bull 1) To bring the extreme bullish potential into play, GDX needs to close above $24.00 (currently around $23.05) on 4X volume today or Wednesday.
  • Bull 2) For the bull flag ($24.50) – prices should finish above $23.00 today.
  • Bear 1) Closing below $22.75 would be negative, but the trend would require a close below $22.40 (close gap) to establish an exhaustion sell signal.

 

I’ll post again before the close.