{"id":7653,"date":"2017-12-21T07:30:20","date_gmt":"2017-12-21T12:30:20","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=7653"},"modified":"2017-12-21T07:30:20","modified_gmt":"2017-12-21T12:30:20","slug":"a-new-buy-signal-for-the-gold-sector","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/a-new-buy-signal-for-the-gold-sector\/","title":{"rendered":"A New Buy Signal for the Gold Sector"},"content":{"rendered":"

The Bullish Percent Index (BPI) for the gold sector just generated its second buy signal for 2017.<\/p>\n

A BPI illustrates the percentage of stocks in a sector trading with bullish chart patterns. It’s a measure of overbought and oversold conditions<\/a>.<\/p>\n

In most cases, a sector is overbought \u2013 and subject to a correction \u2013 when the BPI rallies above 80 (meaning 80% of the stocks in the sector are trading in bullish technical patterns). A sector is oversold when the BPI dips below 30.\u00a0And the BPI generates a buy signal when it turns higher from oversold conditions.<\/p>\n

Here’s how the Gold Miners Bullish Percent Index ($BPGDM) looks now\u2026<\/p>\n

<\/p>\n

In November, $BPGDM dipped below 30. That\u2019s an oversold condition \u2013 indicating that less than 30% of the stocks in the gold sector were trading with bullish technical formations.<\/p>\n

But yesterday, $BPGDM turned higher from oversold conditions and generated only its second gold stock buy signal of 2017.<\/p>\n

The last buy signal we got from this indicator was back in July<\/a>. Gold stocks \u2013 as measured by the VanEck Vectors Gold Miners Fund (GDX) \u2013 rallied 16% in just two months back then. A similar move this time would have GDX rallying above $26 per share by February.<\/p>\n

There\u2019s no guarantee, of course, that this $BPGDM buy signal will play out the same way. But, after declining for several months, the gold sector has plenty of energy to fuel a strong rally.<\/p>\n

Best regards and good trading,<\/p>\n

<\/div>\n

Jeff Clark<\/p>\n

Reader Mailbag<\/strong><\/h2>\n

Will you be buying gold stocks now that this rare gold signal has flashed? Or is there something else you\u2019re waiting to see first?<\/em><\/p>\n

As always, feel free to send in your trading stories, questions, and suggestions\u00a0right here<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

With this buy signal, gold stocks now have the fuel for a strong rally\u2026<\/p>\n","protected":false},"author":25,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-7653","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/7653","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=7653"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/7653\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=7653"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=7653"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=7653"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=7653"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=7653"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=7653"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=7653"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}