Midas Touch Consulting Report - 16th of August 2018
Gold has been in a massive and brutal downtrend over the last four months! Initially my worst case scenario was a move down to 1,240 USD. After a short-lived bounce this support was taken out by the bears and gold moved lower and lower since early July...
On Monday this week even the psychological support at 1,200 USD was broken and during the last three days the final capitulation in gold took place. But tonight it looks as if this massacre is finally over with a low at 1,160 USD. So far gold is up more than 20 USD from these lows already, leaving a nice reversal candle stick on the daily chart.
Considering that the large speculators are heavily short on gold,
I think we will soon see a massive short squeeze, which could take gold back to at least 1,210 USD, more likely to around 1,250 USD. Even a fast move back to 1,295 - 1,300 USD is an option.
Depending on how gold can improve its technical picture, this will either „just“ be a sharp countertrend "dead cat bounce" or the beginning of a massive new up-leg that will take gold to 1,500 USD...
Unfortunately its too early to choose between one of those two scenarios… In any case gold is buy right now and should at least post a nice countertrend rally towards 1,210 - 1,250 USD.
Florian Grummes
Hi Chris Goossens,
The last four months have been pretty tough for precious metals investors and traders. Gold has lost more than 200 USD. The downtrend was sometimes slow and sluggish, then suddenly fast and furious.
Overall there wasn't any real bounce or recovery on the way down. With just a 30 USD trailing stop one could have ridden down the whole move from 1,365 USD, having its stop now at 1,190 USD.
But "coulda woulda shoulda" doesn't help in hindsight. Instead now is the time to be aggressive and buy the beaten down gold and silver as well as some of the mining stocks.
To your success,
Buy Gold up to 1,190 USD and silver up to 14.80 USD.
Buy Americas Silver up to 3,00 CAD at the TSX.
Buy Equinox Gold up to 1,10 CAD at the TSX.