As far as indicators go, gold seasonality has been on fire.
Gold seasonality projected a top in late January. The January 25 Profit Radar Report warned that: “Gold seasonality is starting to turn sour.”
From January 22 – July 24, gold prices tumbled 17.8%.
The July 19 Profit Radar Report pointed out that: “Seasonality will turn strongly bullish in early August.”
Gold and gold ETFs already soared 6.9% since the August 6 seasonal gold low.
The gold seasonality chart projects further gold gains until early October. This, by the way, does not mean that there won’t be any pullbacks.
Meticulously hand-crafted seasonality charts for all major asset classes are available to subscribers of the Profit Radar Report.
Gold seasonality is only one indicator, but it wasn’t the only indicator suggesting a gold rally. The July 21 article “Gold Looks so Bad, it Might Actually be Good” highlights 3 bullish gold development.
Technical analysis also suggested that a tradable bottom was formed on July 24.
The July 26 Profit Radar Report published the chart below (including the yellow projection) and stated the following: “The daily bar chart shows a bullish reversal candle at Friday’s low. Friday’s intraday reversal satisfies the basic requirements for a tradeable low. As long as Friday’s low (1,075.60) holds, odds favor higher prices with a target above 1,300. We will buy a small amount of gold on a move above 1,100. The equivalent level for SPDR Gold Trust (NYSEArca: GLD is around 105.50.”
Simon Maierhofer is the publisher of the Profit Radar Report. The Profit Radar Report presents complex market analysis (S&P 500, Dow Jones, gold, silver, euro and bonds) in an easy format. Technical analysis, sentiment indicators, seasonal patterns and common sense are all wrapped up into two or more easy-to-read weekly updates. All Profit Radar Report recommendations resulted in a 59.51% net gain in 2013 and 17.59% in 2014.
Follow Simon on Twitter @ iSPYETF or sign up for the FREE iSPYETF Newsletter to get actionable ETF trade ideas delivered for free.
If you enjoy quality, hand-crafted research, >> Sign up for the FREE iSPYETF Newsletter