Jan

18

This Chart Formation Is Setting Up An Explosive 2-Year Move In The Gold Miners…

January 18, 2013 | By Tekoa Da Silva

    (click to enlarge)

    The following is courtesy of Gary Savage’s SmartMoneyTracker, posted 1/17/2013…

    “Whenever I am confused by the action in the market, the first thing I do is pull up a very long-term chart so I can get a feel for what is really going on, and eliminate the distraction of the day to day wiggles. I think we are all wondering when the miners are going to join the party as it certainly appears that gold and silver both have formed major yearly cycle bottoms.

    What I saw was quite a surprise. The character of the mining sector has changed completely. For the first time in this bull market miners are forming a rounded base instead of the typical V-shaped bottom. A rounded bottom is a much more powerful basing structure than a V-shaped recovery.

    If you believe like I do that gold is going to between $3500 and $4000 over the next two years, then I would have to say there is no way it is going that high without taking the miners with it. As a matter of fact, I don’t think there’s any way gold goes to even $1900 without taking the miners with it.

    The complete loathing that we are seeing for the mining sector, coupled with the character change in the bottoming process is the setup in my opinion, for a huge move in this asset class over the next two years.

    I can’t tell you exactly when the move will begin, but like I said, I don’t believe for a second that gold is going to $4000 without taking the miners along for a huge ride.”

    To learn more about Gary Savage and his daily technical commentaries, visit SmartMoneyTracker.com.

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