A few weeks ago I told you that it was looking like a critical few weeks for gold trading. I showed you how Hawkeye showed the weakness in the current downtrend, and I showed you what to look for as the first signs of a new up trend. The weekly Hawkeye stops held (support) and now Hawkeye Volume is showing that buyers are returning to the table, accumulating Gold at these low prices. Hawkeye showed you where the smart money was!
Chart 1 – Gold Daily Chart
Hawkeye Gold is now going through accumulation (indicated by the red arrow). Do wait until there is break out on high volume through the high that occurred 2 days ago. This could be the commencement of a major trend, so a great deal of patience is in order here.
Chart 2 – GDX Daily Chart
GDX is an ETF of gold mining stocks, a forerunner of the gold price. Accumulation has taken place (indicated by the red line) and price move has commenced, especially when the last Hawkeye pivot (the yellow dot on the price to the left) is taken out.
[The red arrow and line are for illustration only and are not part of the software]
Gold is now at a pivotal point, with the bias to the upside. Both Hawkeye pivots to the left on Gold and GDX have to be taken out to confirm the uptrend.