RE: Stan Weinstein's Stage Analysis and Market Breadth - Technical Analysis
Is gold going to have a long-term breakout?
I think this is a question worth considering? But I don't think anyone has an answer? I've plotted a 5 year chart for GLD rather than the gold price itself as this way we get a plot of the volume on GLD which may be useful. Please ignore the spurious diagonal & horizontal green lines and the colour bars obscuring the date, the chart finishes on yesterdays data. (I must fix this, but there are other things to do).
The important thing for me here is that there are tops around 190 in 2020 and 2022. Both seemed to be climaxes with massive volume. We are nearing that point now with similar volume. So, is this another top or are we likely to get a breakout? We are getting higher highs and higher lows in the S&P500, though we might just have made a lower high in that index. So perhaps we are in Stage 1 there? If te S&P500 makes a high high people may perfer equities to gold which reduces the chance of gold breaking out?
All I think we can do is watch closely. This is important to me as I have a gold ETF and some gold and silver miner ETFs, so I need to keep an eye on this to decide whether to stay and rely on stop losses or take my (modest) profits.