Jordan Roy-Byrne – 3 Signals That Would Confirm A Bullish Breakout In Gold Unlocking The Bullish Resolution Of The Cup & Handle Pattern
Jordan Roy-Byrne, Founder and Editor of The Daily Gold, joins us to outline 3 signals he is watching for to confirm the bullish breakout in Gold, and that the longer-term cup and handle chart pattern is starting to resolve to the upside.
- A monthly close above $1900
- Gold outperforming versus foreign currencies
- A GDX breadth thrust on the advance/decline line showing greater participation
We unpack each of these factors that Jordan is watching for confirmation, and also discuss near-term resistance levels that could impede that break out. We review why this recent move above $1900 is much more encouraging than the move in May of 2021, due to the time that has gone by to stabilize the current pricing levels, the higher inflation, Fed policy implementation, slowing growth estimates, and weakening general equities markets, all leading to an environment of stagflation.
Next we unpack the very bullish nature of the cup and handle target with a measured upside move to $3,000 gold, and then a further percentage move up to the $3700-$4100 level, in the next 2 to 2 ½ years after Gold confirms the monthly close above $1900. We note that while the gold stocks have lagged, that recently GDX is above the 200 day moving average has been outperforming the general US equities, which are both constructive. We wrap up by getting Jordan’s technical and fundamental thoughts on Silver, and that while it has not received the same bid that Gold has, that when the yellow metal confirms the bull market move is on, that Silver will play catch up and is compelling to start reviewing when we see gold lead things higher.