As we mentioned last week, gold had formed a bullish declining wedge formation, and we anticipated a break up and out, rather than downwards.
Well as the above chart shows, gold broke up out of this wedge formation in recent trading. We view this as a very positive move for gold, and expect the yellow metal to rally sharply from here.
One can also see that the MACD indicator has given a positive, bullish crossover, adding more weight to the technical argument that gold is about to embark on a rally.
Therefore hold on to your gold and gold stock positions as the next couple of months should see them soar.
For those interested in getting a bit more bang for your buck and adding a touch more excitement to your portfolio, then check out our Options Trading Service please click here.
To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address.
For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.
For those readers who are also interested in the nuclear power sector that is currently coming back to life, you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.