Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
Does Fed Know Something Gold Investors Do Not Know? - 21st Mar 19
Gold …Some Confirmations to Watch For - 21st Mar 19
UKIP No Longer About BrExit, Becomes BNP 2.0, Muslim Hate Party - 21st Mar 19
A Message to the Gold Bulls: Relying on the CoT Gives You A False Sense of Security - 20th Mar 19
The Secret to Funding a Green New Deal - 20th Mar 19
Vietnam, Part I: Colonialism and National Liberation - 20th Mar 19
Will the Fed Cut its Interest Rate Forecast, Pushing Gold Higher? - 20th Mar 19
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19
Gold Price Confirmation of the Warning - 18th Mar 19
Split Stock Market Warning - 18th Mar 19
Stock Market Trend Analysis 2019 - Video - 18th Mar 19
Best Precious Metals Investment and Trades for 2019 - 18th Mar 19
Hurdles for Gold Stocks - 18th Mar 19
Pento: Coming QE & Low Rates Will Be ‘Rocket Fuel for Gold’ - 18th Mar 19
"This is for Tommy Robinson" Shouts Knife Wielding White Supremacist Terrorist in London - 18th Mar 19
This Is How You Create the Biggest Credit Bubble in History - 17th Mar 19
Crude Oil Bulls - For Whom the Bell Tolls - 17th Mar 19
Gold Mining Stocks Fundamentals - 17th Mar 19
Why Buy a Land Rover - Range Rover vs Huge Tree Branch Falling on its Roof - 17th Mar 19
UKIP Urged to Change Name to BNP 2.0 So BrExit Party Can Fight a 2nd EU Referendum - 17th Mar 19
Tommy Robinson Looks Set to Become New UKIP Leader - 16th Mar 19
Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - 16th Mar 19
Towards the End of a Stocks Bull Market, Short term Timing Becomes Difficult - 16th Mar 19
UKIP Brexit Facebook Groups Reveling in the New Zealand Terror Attacks Blaming Muslim Victims - 16th Mar 19
Gold – US Dollar vs US Dollar Index - 16th Mar 19
Islamophobic Hate Preachers Tommy Robinson and Katie Hopkins have Killed UKIP and Brexit - 16th Mar 19
Countdown to The Precious Metals Gold and Silver Breakout Rally - 15th Mar 19
Shale Oil Splutters: Brent on Track for $70 Target $100 in 2020 - 15th Mar 19
Setting up a Business Just Got Easier - 15th Mar 19
Stock Market Elliott Wave Analysis Trend Forercast - Video - 15th Mar 19
Gold Warning - Here Are the Stunning Implications of Plunging Gold Price - Part 1 - 15th Mar 19
UK Weather SHOCK - Trees Dropping Branches onto Cars in Stormy Winds - Sheffield - 15th Mar 19
Best Time to Trade Forex - 15th Mar 19
Why the Green New Deal Will Send Uranium Price Through the Roof - 14th Mar 19
S&P 500's New Medium-Term High, but Will Stock Market Uptrend Continue? - 14th Mar 19
US Conservatism - 14th Mar 19
Gold in the Age of High-speed Electronic Trading - 14th Mar 19
Britain's Demographic Time Bomb Has Gone Off! - 14th Mar 19
Why Walmart Will Crush Amazon - 14th Mar 19
2019 Economic Predictions - 14th Mar 19
Tax Avoidance Bills Sent to Thousands of Workers - 14th Mar 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

Gold Shares Buying Opportunity, Investors Back Up the Truck Now

Commodities / Gold & Silver 2009 Dec 15, 2009 - 08:10 AM GMT

By: Neil_Charnock

Commodities

Best Financial Markets Analysis ArticleI have been warning you all for several weeks that a buying opportunity for gold shares was approaching during December and here it is.  I want to take a near term look at this gold rally in this article.  I do apologize that I missed my normal release of an article last week it was due to some rare and unscheduled time off with a tooth abscess.


Well gold has retreated for a breather and so has the Australian gold sector as expected but this is not the end, barely half time in this up-leg for gold.  I have drawn a few ellipse shapes on the 5 year gold chart below because I want to point out the pair of up-legs during 2007 and 2008.

The chances are that a second act is set to follow just like then and therefore we should see a high level of support around this level now and over the coming weeks.  Then we launch towards the US$1,400 level with a possible overshoot.   Share action has been strong as we predicted and therefore my current expectation is for this to be an excellent buying area right now for Australian gold stocks.

Each company is to be taken on its own merit and I have noted at least two under performers that should shine as we pull out of this dip.  This will produce a significant upside and I am pleased to say investors are selling these too creating an even better buy opportunity.  Many of the strong performers are likely to follow through as well. 

There is still plenty of room for upside in this sector and I have been pointing to a rally progressing strongly into early February and possibly to May 2010 for many months now.  I have not changed my view at all no matter how it looks short term.  There were many doubters when I announced a powerful break out in this sector many weeks ago.  There were many doubters much earlier when I announced that the indicators were pointing to upside and that was months ago. 

Here is a chart showing the upside potential in the emerging producers sector. Support could be further below yet for some of these stocks but look at those highs because that is where we are headed. 

The Australian gold sector looks every bit at profitable and vibrant as it did in mid 2008 when this index was up at the 150 level.  There is potential for a parabola to form after this brief correction sending this index up to the levels seen in 2007 at almost 160 when gold first hit $1,030.  This seems to indicate that the best is certainly yet to come and it will be a sharp exciting rally.

Load up the truck and use this minor correction to pick off the lows.  More conservative investors should watch this sector after Christmas and into early January for confirmation.  I will be looking to supply ample warnings of the next pull back amid the excitement that will surely follow because there is more to success in this game than buying intelligently.  You have to be willing to sell and take your profits after they have run without fear that the rally could continue without you.

Of course we have to be on guard that the early New Year rally to late January early February may be a top because the global banking and credit crisis is still the rabid Tyrannosaurus Rex in the corner.  Forget about the elephant in the room this is far more serious.  I have been warning about the lack of a debt securitization market and how this restricts credit particularly in the USA.

If this turns out to be the case we will be following the market down looking for the next mother of all gold stock buying opportunities.  Forceful down trends are generally sharp like final blow off tops and you have to move fast so let’s keep a very close eye on this situation.

We see a strong need to increase our output with several special Gold Member reports on companies of interest that offer both fundamental and technical timing opportunities and have recently developed a special area in GoldOz to deliver this.

I have been busy writing a special report over the past two weeks that will be released to Gold Members before I launch it to the open market early in the New Year or just prior to Christmas.  We released a special educational report back at the end of August and it was a huge success making many investors a great deal of money with more to come.

I have posted a chart below to illustrate how successful that was however I have had to remove the company name to be able to post the chart in this article. Note the point on the chart where we released the report.

I have decided to run a special on Annual Gold Membership only so I have discounted this down to AUD$275 for a couple of weeks running up to Christmas.  Call it a gift opportunity for current Members and Gold Members to top up or renew their subscriptions and take advantage of our Rewards Program as well.  New Gold Members are also welcome of course.

We will have to raise the cost of subscriptions next year as we continue to ramp up the increased services at GoldOz.  This will allow me to complete the hand over of administration and certain product features and concentrate more on special situation reports.  If the market does correct into a major fall we will hold prices and just follow the fundamentals to stay on top of the gold sector and maintain a greater communication and special situation service so we can make some profits in the down turn.

Either way we see an exciting start to the 2010 year and will watch this with you to see how things develop.  Stimulus spending and the carry trade could keep things going along this path for longer than most analysts realize and produce a handy second high into May.  We will keep you posted.

Good trading / investing.
Regards,
Neil Charnock

www.goldoz.com.au

GoldOz is currently developing a Member area and has added further resources for free access. We have stepped up our research and stand by to assist investors from all walks of life. We sell an updating PDF service on ASX gold stocks from only $AUD35 for 3 months – the feedback is grateful and enthusiastic because we are highlighting companies that have growth potential and offering professional coverage of the sector. GoldOz web site is a growing dynamic resource for investors interested in PGE, silver and gold companies listed in Australia , brokers, bullion dealers and other services.

Neil Charnock is not a registered investment advisor. He is a private investor who, in addition to his essay publication offerings, has now assembled a highly experienced panel to assist in the presentation of various research information services.  The opinions and statements made in the above publication are the result of extensive research and are believed to be accurate and from reliable sources. The contents are his current opinion only, further more conditions may cause these opinions to change without notice. The insights herein published are made solely for international and educational purposes. The contents in this publication are not to be construed as solicitation or recommendation to be used for formulation of investment decisions in any type of market whatsoever. WARNING share market investment or speculation is a high risk activity. Investors enter such activity at their own risk and must conduct their own due diligence to research and verify all aspects of any investment decision, if necessary seeking competent professional assistance.

Neil Charnock Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules