The Point of Gold Recognition?


A few days ago we offered that GDXJ/GLD were at inflection points and that the next leg up to 1425/1450 in gold may be here.

Yesterday may have been the first step.

The behavior on the first pullback will be key to observe with subsequent follow through.

If GDXJ offsets $49-50, which from a bearish perspective is a right shoulder of an H&S top, that should confirm the idea of a new leg up because fast moves come from failed patterns.

A failed Head & Shoulders top implies new highs in GDXJ.

Moreover, new swing highs in gold will be a point of recognition for those bearish of gold who believe this years rally was a bear market rally.

New highs could create a vacuum as the perception that a bull market in gold is underway takes hold.

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