by Peter Degraaf
Gold Seek
Technical Analysis of the gold sector reveals a number of red flags, such as negative COT numbers and a mining sector that is at least temporarily overbought, having more than doubled since January.
And yet…….
Sometimes a market that is overbought can remain that way for longer than anyone anticipated. Remember the ‘Dotcom’ bull market of the 1990s? It became overbought and kept on rising for many months.
By comparison, gold, silver and mining stocks represent tangible value, not a concept of something ‘that might be’, or something ‘that may catch on’.