Why I Am Bullish On GOLD

If you look at the above 5 year weekly chart of gold, you will see that gold has been in an uptrend since 2001. Notice how the 60 week moving average has provided amazing support for this commodity. Every time gold gets down to the average it finds support and begins a powerful rally. This happend many times as you can see in the above chart.

If you look in the lower panel, you will see an oscillator called CCI... There's no magic to this oscillator but when you combine it with the trend it can help time significant buying opportunities. Notice every time the CCI oscillator gets below the buy line it coincided with a major buy point.

One thing I noticed about the gold and silver market is that it loves triangle formations. The breakouts from such a formation are usually very profitable. Gold is just beginning to breakout of such a formation now.

Ok..so what now...It looks like the ideal place to buy was back in October. Yes that was the ideal time to buy but if you missed it, I think this is a good spot right here. If you look at the lower chart you will see that Gold has just tested it's 50 day moving average which it held and now appears to be moving up. This is the first pullback to the average since it turned up. I think as long as gold holds this 50 average, you can stay long with a trailing stop right below the average. Both the weekly and daily trends are now moving up. I'll be playing gold from the long side on the next dip.