Gold & Mining Shares May Be Set For Major Surge
Gold & Mining Shares May Be Set For Major Surge from King World News
After a rough start to the summer, gold and mining shares may be set for a major surge.
By Michael Oliver, MSA (Momentum Structural Analysis)
July 17 (King World News) – There have been three waves of weekly momentum decline, with the third wave not dropping below the low readings of the second wave (red horizontal on momentum). Therefore, momentum did not confirm the price chart violation of the mid-May low (red horizontal on price).
Not out of the woods yet, but last week was a start…
Note that many of the clusters of weekly bar action on the momentum chart establish themselves above or below the zero line, using it as a pivotal support or resistance level. In the case of the past five weeks (below the zero line), there was a rally three weeks ago that crested just short of the zero line, followed by further downside. The ability next week to overcome the zero line/3-wk. avg., especially on a weekly closing basis, will be a good sign that a low is in place. The 3-wk. avg. for next week is $1229. Let’s see if gold can get above it and close the week there. Referencing the August future.