How Far Are We Into The Gold and Oil Uptrend?

Carter Thompson

E-Mail: info@markettimingsignals.com
Website: http://www.markettimingsignals.com/

Gold and Oil, along with stocks, have performed well in the past week as continued weakness in the US dollar has prompted investors to chase asset reflation trades. Is it too late to get into Gold and/or Oil? One way to find out how far we are into the full move is to use Investor Business Daily’s (IBD) rules on counting bases. Basically, IBD says that a base is a correction or consolidation period that allows prices to take a breather, but is just part of a bigger trend. IBD starts counting bases on the first correction/consolidation after the bottom, providing the whole move preceding the base is at least 20%. As a rule, it is safe to buy breakouts of 1st and 2nd bases, while 3rd and 4th bases have smaller likelihood of breaking out. Bases only reset if they break the low of the preceding base.

Looking at the daily chart of WTI Crude (Continuous Contract), we are just at the 2nd base of the whole up move, thus chances of a breakout are still high. In fact we might already be seeing a breakout from a falling channel area pattern.

In fact, when we look at the weekly chart, we are just at 1st base!

Look at the daily chart for Gold, we have just broken out of Base 2, so we still have some upside going towards Base 3. Same goes with the weekly chart!

So long as these charts haven’t topped out at Base 3 or 4, buying these Oil and Gold commodities and stocks on momentum should continue to provide profitable opportunities.

I will be adding more information on my website in the coming week along with my free market timing signals for the QQQQ, DIA, SPY, IWM, GLD, USO, UNG and many other funds.

For more market analysis and timing signals please visit my website: www.MarketTimingSignals.com

Carter Thompson

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This article is intended solely for information purposes. The opinions are those of the author only. Please conduct further research and consult your financial advisor before making any investment/trading decision. No responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis.

Information, charts or examples contained in this lesson are for illustration and educational purposes only. It should not be considered as advice or a recommendation to buy or sell any security or financial instrument. We do not and cannot offer investment advice. For further information please read our disclaimer.

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