On Thursday’s “Futures Now,” MacNeil Curry, the head of Global Technical Strategy at Bank of America Merrill Lynch, maintained that there is likely “further upside” for those interested in buying gold coins. Actually, he’s “looking for a move up to the $1,410, potentially $1,450 area.”
Not only for those captivated with buying gold coins but in generally speaking, technicians can be seen hunched over their charts and figures mumbling under their breath “Follow the trend.” But on occasion they recall the Blood, Sweat & Tears tune and sing “What goes up, most come down”—or the other way around. In a nutshell, gold fell too far, too fast.
“If you go back and look at what we did in mid-June, the trend was so overextended,” Curry remarked. “This trend had gotten way too stretched, like a rubber band, and now we’re snapping back.”
“The rest of the precious metals complex is now starting to confirm the price action in gold,” Mr. Curry observed. “If you look at silver, if you look at platinum, if you look at palladium, those things are starting to rally as well. So that suggests that this is something more than a short squeeze in gold.”
“If you look at where a lot of these position unwinds have been transpiring, they’ve been transpiring in (GLD),” Curry stated. “And if you look at the shares outstanding in (GLD), you can see that that is starting to stabilize, which suggests that some of the rampant selling or unwinding that drove this market significantly lower has subsided, at least for the time being.”
Altogether, Curry insisted the swing is plainly moving higher. “I certainly wouldn’t be stepping in front of this thing here,” he advised.
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