This is the year we see a strong break through that resistance level established in 2011.
RSI trending up with bull divergence since 2013. I see a 2016 clone-type move for 2017.
Will we pause/drop $20 every $80 gain? Yes. But do not confuse consolidation with a bear. The bear market ended in January of 2016.
This is a long-term trade.
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Having a day job has making posting here everyday a challenge.
But this is a perfect example of not panicking and selling to early (this excludes scalpers who are looking to swing trade).
Hypothetical situation:
$1129-1220 $1220-1180 $1180-1250 $1250-1220 $1220-1300 etc.
If you're accumulating long positions like me, you have to understand healthy pullbacks are part of a bull movement. You'll always have small sell offs, which always overshoot because retailers get nervous that this is the top, then they sell as well.
Miners have held gains (both silver and gold), and the DXY is held lower.
I suggest buying miners that have low variable costs such as BTO, ABX, SSO.
So this is a longer term trade that will take place over the course of the year. Ever since the RSI bottom in 2013, it has been trending up, yet we had a decrease in prices, which means there was a bull divergence in the RSI. Also, with the RSI making higher lows, I'm making the argument that the gold price is currently in a large consolidation since it's huge run up to 1900, and we will be headed past 1900 over the next few years. I believe in 2017, gold will follow a similar path to 2016 (which is where I mentioned the clone), and we will see a run to the mid to late 1400's during the spring/summer.
I mentioned that there will be consolidation/slight pullbacks on the way up, but if you are a trader who is going to buy and hold, the side I would be on is long. Meaning, don't trip over dollars to pick up pennies.