Now that more investors are paying attention to Gold, it’s time to illustrate what history shows about chart movements.
The technical term “Cup and Handle” refers to a chart formation that resembles a tea cup with a handle on its right side. Once a “Handle” is formed it usually signals a huge upside move.
Look at the recent spot gold chart below:
Gold spot chart
How to Read This.
Gold peaked in September 2011 (left side of cup) and for the last Nine years it went through a saucer pattern (bottoming in mid-2015) back up to where it is today at $1,900 (right side of cup).
Please note, the “Handle” has not formed.
Translation: the handle means movement on the chart should drop slightly (right side of the chart) before continuing the upside move. See the Silver cup and handle chart below.
The size of the cup and handle varies over time and the commodity or stock involved.
This is evidenced by the massive formation of silver’s multi-decade cup and handle dating all the way back to 1972.
Read: Silver’s Signifying Significant Strength Here.
In other words, Silver will give you the biggest bang for your buck.
Silver cup and handle
That’s not to say you shouldn’t buy gold. You should be accumulating gold and silver on a regular basis.
However, if history is any indication – and it’s usually the best indicator – you should expect gold to dip from its current level in order to form its “Handle” before taking off to the upside.
“…In Plain English,” it’s not a matter of IF precious metals AND mining stocks are going up…
They’re at the breakout point to the upside, unlike tech stocks which are at the breakdown point to the downside.
So, if you’re considering buying Gold/Silver and/or mining stocks be sure to read our recommendations in our monthly newsletter.
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