Strong Resistance, Built In

Unbeknownst to many, we’re witnessing a once-in-a-century opportunity and public service.

Those from the era of The Great Depression, are all gone now.

So, the same playbook can be run without anyone (alive) knowing we’ve been here before.

The public service presented to us, the massive on-going exposure of the financial charlatans and grifters.

You can be ‘certified’ and still be a certified (market) dolt.

Neil McCoy-Ward, points this out in his recent update linked here. Go to time stamp 8:40;

“Clueless” … “Completely Asleep”

Anyone who’s worked in the corporate world (in any sector), especially now, knows it’s near impossible to think or act independently.

So, it is with gold.

Gold & The Grifter Bandwagon

Where was everybody back in 2001, when gold was bottoming in the area of $270/oz., after a multi-decades long bear market (from 1980)?

The fact we have nothing but breathless panic from grifters and hangers-on, about rampant inflation should at least give one pause, we could be at a temporary or major reversal (not advice, not a recommendation).

At least with the analysis below, there’s a decision point that will let us know if we’re due for another leg higher, or if there’s a Sovereign debt crisis about to break that would kick-off massive selling of all assets including gold.

Gold GLD, Weekly

As the title says, we’ve got something akin to a ‘Maginot Line’ for gold. What looks like insurmountable resistance that could still be breached … but for now, is holding.

With each (manufactured) crisis, gold’s momentum in the form of price and volume, is declining.

From a Wyckoff analysis standpoint, the bulls (for now) are running out of steam.

The ‘terminating wedge’ in gold’s price action has already been discussed, link here.

Looking at the action in another light, we see a Wyckoff Up-Thrust in the works. Price action has penetrated a previous high and is currently struggling.

If gold (GLD) is able to significantly penetrate the resistance and hold, then we’re likely on to the hysterical predictions of the masses.

If not, and we get a reversal, it’s going to be big surprise for many. They’ll be stunned, unable to move and eventually provide more fuel for the downside as they sell in panic.

Downside Drivers

What could possibly be a downside driver for gold?

One has already been mentioned, a Sovereign debt crisis. It’s a likely event considering the record-pace rise for interest rates and subsequent bank failures.

Another is an ‘executive’ decision that gold ownership is outlawed. It’s happened in the past and those who got through that event are no longer with us.

Moving on, we’ve already been told there will be a ‘cyber-attack’.

What’s going to happen to gold, when there’s no electricity, fuel or food shipments?

As survivalist author Ron Foster says, in this interview, (time stamp 27:20), during a grid-down situation, he’s not giving up his food. He says, during such an event, precious metals are “meaningless”.

Stay Tuned

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Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

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