Oliver’s Momentum Work Suggests Gold is ready to Pop

Despite gold’s lackluster performance since it hit $1,350 in 2016, our model portfolio has caught up with the government and central bank supported S&P 500. And based on Michael Oliver’s very reliable momentum-based technical analysis, gold is getting ready to break out to much higher prices. If he is right, the remainder of 2017 should be very good for most of the stocks covered in this letter.  Following is what Michael Oliver said in his August 13, 2017 MSA 360 Weekend Report:

“On a simple price chart gold is back up into the $1290s, a high it‘s seen twice in recent months. 

“But for this very long-term momentum chart the readings are not only back up to those two prior highs of the year, but also to all the oscillator highs of 2016. Seven surges have reached the same level at 5% over the 200-week moving average. A big yardstick this oscillator, and it defines a fourteen-month-wide pending secondary breakout level. This momentum chart’s primary breakout was in February 2016 as the massive downtrend came out. 

“Other long-term momentum charts we’ve shown recently have already broken out. This is the Big Daddy of them all.

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