![\"\"](\"http:\/\/profitimes.com\/wp-content\/uploads\/2011\/09\/gold-LT.png\" "\\"gold")
<\/a>\nChart courtesy stockcharts.com<\/em><\/p>\n
Notice that the comparison with 1979 also gives us support at or near the low $1,500\u2032s.<\/p>\n
When we reached oversold levels on the RSI combined with a BPGDM Index below 50, it often marked a bottom for gold:<\/p>\n When we look at the entire bull market of Gold since 2001, we can see that the 10 Months Exponential Moving Average was a good entry level. Right now, it is around $1,550. Price sometimes dipped slightly below this level, so once again, we might see the low $1,500\u2032s.<\/p>\n When we look at the Weekly chart of Gold, we can see that the 30EMA has often supported the Gold Price.<\/p>\n Actually, the 150 Days EMA, which is a proxy for the 30 Weeks EMA, also provided support during the 1980 price explosion:<\/p>\n When we look at the following chart, we can see that the USD broke above the pink resistance line last week. Price is now also above the 200EMA, which acted as support and resistance in the past. This is a Bullish Development, and should be bad for precious metals and Equity Markets.<\/p>\n However, when we look at the gold price (2nd part of the chart), we can see that the 150EMA has not been broken to the downside yet. Last but not Least, the SP500 also dropped below its 400EMA.<\/p>\n So unless we are about to see 2008 all over again, I think Gold and GDX are in the best position. I do have something positive to say about silver: Price is now 21.41% below its 50EMA. Whenever price fell more than 10% below its 50EMA during this bull market, silver was always at or near a bottom, EXCEPT for 2008. If we are about to see 2008 all over again, or if the commodity bubble burst last week, silver could drop another 50% from current levels, if not more\u2026<\/p>\n Here\u2019s what could happen if we are about to see 2008 all over again (this is an updated version of\u00a0a chart I published on July 20th<\/a>)<\/p>\n Here\u2019s another positive picture for silver,\u00a0which I posted a while ago<\/a>:<\/p>\n Silver Wheaton looks very bad at this point, as it is forming a Head & Shoulders Pattern:<\/p>\n As you probably know by now, I am fascinated by historical comparisons. Here\u2019s my latest one: The gold price compared to the Shanghai Bubble:<\/p>\n I calculated the Gold-to-10Year Yields, which got me the following chart:<\/p>\n The ratio hit a long term resistance line a couple of days ago, just like it was in the early 80\u2032s. I then decided to plot the Gold:10Years ratio together with the SP500:<\/p>\n Isn\u2019t it interesting to see that bull markets in the Gold:10YR Yields ratio are in line with Bear markets in the SP500, and that Bear Markets in the Ratio are accompanied by Bull markets in Equity markets?<\/p>\n To end this article, I compared the Dow Jones index now with the Dow Jones in the \u201970s:<\/p>\n The Total Return index shows a similar picture:<\/p>\n For more analyses and Trading Updates, visit\u00a0www.profitimes.com<\/a>\u00a0!<\/p>\n","protected":false},"excerpt":{"rendered":" After gold and silver got hit hard last week, some of you probably wonder if that was the end of the 10 year+ bull market for precious metals. In this article, we will describe both the Bull & Bear Cases for Gold, Silver and Stocks and we will also make some interesting comparisons. Let\u2019s start … <\/p>\n<\/a><\/p>\n
\n<\/a>Chart courtesy stockcharts.com<\/em><\/p>\n<\/a>
\nChart courtesy stockcharts.com<\/em><\/p>\n<\/a>
\nChart courtesy stockcharts.com<\/em><\/p>\n<\/a><\/p>\n
\nFor GDX (Market Vectors Gold Miners ETF) the 400EMA seems to be the level of importance. It has been tagged on Friday.
\nSilver looks much worse than Gold and Gold miners right now. That\u2019s the reason why I haven\u2019t touched silver at all since late April, when I expected Silver to crash. For the first time since 2008, the price has broken decisively below the 150EMA, which seems to be the level of importance (for both Gold and Silver).<\/p>\n
\nSilver is a broken parabola, and it takes time, a lot of time to reach new highs (if ever), as I have written several times.
\nThe stock markets need to recover their 400EMA before they are in a favorable position.<\/p>\n<\/a>
\nChart courtesy stockcharts.com<\/em><\/p>\n<\/a>
\nChart courtesy stockcharts.com<\/em><\/p>\n<\/a>
\nChart courtesy stockcharts.com<\/em><\/p>\n<\/a>
\nChart courtesy Prorealtime.com<\/em><\/p>\n<\/a><\/p>\n<\/a>
\nChart courtesy Prorealtime.com<\/em><\/p>\n<\/a>
\nChart courtesy stockcharts.com<\/em><\/p>\n<\/a><\/p>\n
\nIt shows that gold has never been more expensive relative to bond yields.
\nOn the other hand, low yields mean expensive bonds.
\nIn my opinion, it shows that both gold and bonds have never been more expensive TOGETHER ever before.<\/p>\n<\/a><\/p>\n<\/a>
\nChart courtesy Prorealtime.com<\/em><\/p>\n<\/a><\/p>\n