I’m hoping you have been building up your gold exposure over the last year and are currently sitting pretty waiting to see if this explosive rally in gold can keep going.
But whether you have filled your boots with gold stocks or are aiming to add more, today’s Closing Bell is for you.
I have been dishing out a few gold stocks to you over the last few months in case you needed to play catch up and jump on a few stragglers.
I discussed Resolute Mining [ASX:RSG] in March, which is up 50%. I also mentioned Regis Resources [ASX:RRL] which has continued to lag behind.
I watched the CEO make a presentation yesterday at the Noosa Mining Conference and he was bullish on their cash flows going forward now that they were unhedged. He seemed quite confident that McPhillamy’s was a solid growth project for them.
I reckon they aren’t far away from firing again.
I also told you to consider De Grey Mining [ASX:DEG] a couple of weeks ago when you could have picked them up for $1.14. They are trading at $1.22 as I write this.
A 7% gain in two weeks on a multi-billion dollar stock is better than a poke in the eye so I hope you managed to grab some.
As rates start dropping and the US dollar along with it, there is a case to be made that gold is just getting started on its bull run.
But having watched many bull markets over the years, you have to be prepared for anything, because large corrections can occur which shake out the unwary.
That’s why I thought it was a good time to have a detailed look at how the uptrend in gold has developed since 2016 which is when the current bull run began.
You will see how waves develop, with corrections often revisiting the midpoint or the buy zone (75%-87.5% correction) of the previous wave.
When you understand how they evolve you are less likely to freak out when the inevitable corrections occur along the way.
You will also know when to be wary and when to get excited about the opportunity on offer.
Gold has already run pretty hard since October 2023 with few pullbacks. The higher it goes now the more wary we should be that a 50% retracement of the previous wave could be coming.
But it is in an explosive phase after breaking out of a three year range, so there is no reason why gold can’t continue marching higher at a rate of knots.
That’s why I have been so vocal over the last year to prepare you for the breakout.
Once it gets going you want to be riding it and taking some profit along the way rather than trying to hop on when it is already overbought, and a correction may be around the corner.
But if you haven’t managed to build up enough of a position there is still time as many of the developers and explorers have been lagging way behind the gold price.
In today’s Closing Bell I set out all the key levels below the current gold price where I expect to see strong support if a correction does occur in the short-term.
My mate Brian Chu has vast knowledge of the fundamentals of each and every gold stock out there. I lean on his knowledge when I am researching in the gold sector, and he always points me in the right direction.
So if you are still looking to add more gold exposure as this bull market builds momentum you should check out this report that he has just released.
Combine my technical analysis of the gold price with Brian’s detailed fundamental analysis of individual gold stocks and you should be on your way to riding the bull with a smile on your face.
Regards,
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Murray Dawes,
Editor, Retirement Trader and Fat Tail Microcaps
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