Situation is Ultra-bullish for Gold & Silver Bullion and Stocks! What are You Waiting For? (+3K Views)

The technical situation is ultra-bullish for both gold and gold stocks. Sentiment indicators…continue to show [that] the dollar is poised for a serious decline and the MACD on the gold chart is giving one of the most powerful buy signals in the history of the bull market. The GDX should reach $75 a share by year-end and gold should push to new highs in the $2000 area by January of 2012 [while silver] could possibly be the best investment opportunity available to investors for many years to come! [Let me explain and back up my comments with an array of charts.] Words: 781

So says Morris Hubbartt (www.SuperForceSignals.com) in his most recent Weekly Market Update* which Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has further edited ([ ]), abridged (…) and reformatted below for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

Hubbartt goes on to say, in part:

The U.S. Dollar

Sentiment indicators…continue to show [that] the dollar is poised for a serious decline. My technical work continues to project a 65-66 longer term target. This dollar forecast, if it even plays out partially, is enormously bullish for hard assets. See US Dollar Chart Sentiment

Gold Bullion

The correction in gold has been healthy and necessary. A significant rebalancing market sentiment has occurred, putting the gold market in a powerful stance. The MACD on this chart [See Gold Super Highway Chart] is giving one of the most powerful buy signals in the history of the bull market.

Leverage has been greatly reduced because the speculators have been “stop lossed” out of the market, in size. Gold held strongly without the support of these leveraged speculators, and this is the exact situation that sets the stage for a major advance.

When the traders with the most money (the commercials) step up the size of their investments, that has historically been the time to employ capital, rather leverage your position for a quick trading gain. The gains that occur when the market is positioned as it is now can be absolutely enormous.

Gold Miners Bullish Percentage Index

I’m using a number of charts this week to demonstrate the oversold and undervalued nature of the entire precious metals sector. The $BPGDM is the “gold miners bullish percentage index”. It is an index designed to show the bullish or bearish posture of gold stocks.

With this chart [See $BPGDM Against Gold Chart] I’m using the RSI indicator to demonstrate a historical key bull market oversold reading coupled with an indicator, to show key turning points.

Substantially oversold gold stocks are indicated in the top portion of the chart. In the middle of the chart is the gold price, and I’ve highlighted what has been impeccable timing of the commercial traders.

The bottom line is that the technical situation is ultra-bullish for both gold and gold stocks.

GDX ETF

Patience is required to win the prize in this volatile sector. The target for the GDX chart [See GDX Breakout Chart] in short term is $64. I’m projecting $75 a share for GDX by year-end, and $95 based on the h&s pattern. My longer term target (about 18-24 months) is $133.

GDX vs. Gold

This chart [See GDX Against Gold Bullion Chart] is quite dramatic. It is visual picture showing how undervalued gold stocks are in comparison to gold. The first target for GDX is the $64 area. From there to get GDX to the targets mentioned above, it will require gold to push to new highs in the $2000 area, which I am projecting will occur by January of 2012.

GDXJ ETF

What volatility takes away, a disciplined buy/sell program will assist in getting back for you. The gold junior stocks are a sector in which it really does pay to buy weakness and sell strength to survive the volatility. Note the blue horizontal target area lines on the chart [See GDXJ Targets Chart]. Achieving both of those should put some zip back into your portfolio, and I’m very sure it’s going to happen!

Silver

Silver remains one of my favorite assets. I expect silver to trade with gold in the shorter term, followed by a “command performance”, similar to what we saw in the spring of this year. Technical patterns, sentiment, and smart money buyers indicate that silver could possibly be the best investment opportunity available to investors for many years to
come!

*http://www.321gold.com/editorials/sfs/hubbartt102811.html

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