By Adam Hamilton, Gold Seek:
The gold-mining sector is on the verge of flashing the fabled Golden Cross buy signal. This is one of the most powerful and revered indicators in all of technical analysis. When it arrives after the right conditions, it flags the critical transition from bear to bull markets. And today’s gold-stock environment is perfect to spawn such a pivotal Golden Cross. Seeing this milestone will accelerate capital flows back into gold stocks.
Technical analysis is derided in some circles, which is understandable since much of it is subjective. But there is simply no doubt that many traders buy and sell based on technicals, which certainly makes the interpretation of price action a self-fulfilling prophecy at times. Stock-price levels also greatly affect both sentiment, which drives the lion’s share of buying and selling, and even fundamental valuations.
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