Gold Bull Correction: Not An If, But When

Experience, Creativity And Dedication To Finding And Presenting The Best Investment Ideas • Aug 13, 2016 at 5:47 PM EDT

A bull market in gold and silver has been confirmed, but no bull market is sustainable on a nonstop price spike. Therefore, it is not if, but when, a correction will begin.

Technical analyst Jack Chan charts indicators that confirm both the gold bull market and an impending correction.

Chancover3

Our proprietary cycle indicator is down.

chan4_8-13

We are short GLD with a tight stop.

Chan2_8-13

As long as the dollar continues to consolidate, the expectation is a bullish breakout.

chan3_8-13

The euro is inverse to the dollar, and the current consolidation may seem like eternity to short-term traders, but the previous consolidation lasted much longer before breaking down.

Summary
A bull market in gold and silver has been confirmed, but no bull market is sustainable on a nonstop price spike. Therefore, it is not if, but when, a correction will begin. Bull market corrections can be very sharp but short-lived; therefore, the next cycle bottom could be an excellent entry point.

Meanwhile we are short GLD with tight stops.

Disclosure:

1) The following companies mentioned in the article are sponsors of Streetwise Reports: Klondex Mines Ltd., Pretium Resources Inc. and Gold Standard Ventures Corp. The companies mentioned in this article were not involved in any aspect of the article preparation or editing so the expert could write independently about the sector. Streetwise Reports does not accept stock in exchange for its services. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
2) Chen Lin: I or my family own shares of the following companies mentioned in this article: Kinross Gold Corp., Gold Fields Ltd., OceanaGold Corp., B2Gold Corp., Pretium Resources Inc., Maya Gold and Silver Inc., K92 Mining Inc., Gold Standard Ventures Corp., Paramount Gold and Silver Mining Corp. and GoldQuest Mining Corp. I personally am or my family is paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. I determined which companies would be included in this article based on my research and understanding of the sector.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview/article until after it publishes.

Charts courtesy of Chen Lin