Gold Set to Climb, According to Profit Confidential Expert
“The break of the downtrend in late July was critical,” says
Cekerevac. “This trendline was then successfully tested in early August and
turned up in a bullish manner.”
Cekerevac also reports that since the break from the
downtrend in late July, any pullback in gold was used as a buying opportunity.
In the article, “Where
Does Gold Trade Next?,” Cekerevac elucidates his thesis from a technical
analysis basis, explaining that he turned quite bullish in late July, as he saw
larger volumes on up days, as well as higher highs and lows. The next test was
the 200-day moving average (MA), he says, which was also successfully breached
and subsequently held.
Cekerevac cautions, however, that because of the fast price
appreciation, the market view on gold might be slightly overextended over the
short term.
“On a long-term weekly chart, following the highs in 2011,
gold has seen a neutral to downward market,” says Cekerevac. “However, this
sentiment has just shifted, as gold broke through its resistance line.”
Cekerevac believes that this now opens up the possibility of
a retest of the high just above $1,900 per ounce. He also highlights that on
the long-term chart, there is not an overbought condition evident in the Relative
Strength Index (RSI).
“This means that, while a pullback in gold over the short term might be possible, over the long term, it is not yet a worry that this move will be overextended,” concludes Cekerevac.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.
Profit Confidential
was among the first (back in late 2006) to predict that the U.S. economy would
be in a recession by late 2007. The daily e-letter correctly predicted the
crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and
rode the bear market rally from a Dow Jones Industrial Average of 6,440 on
March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
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