Venture momentum, not surprisingly, has picked up significantly following the confirmed breakout above a short-term downtrend line June 13 as explained in the June 14 Week In Review And A Look Ahead. It’s critical to understand that this is not a bear market rally like the ones witnessed during the second half of 2011, the early part of 2012 and the summer of 2012. A fundamental change has occurred. This is a primary new uptrend, born late last year as John’s charts have repeatedly shown, and it’s now picking up steam in time for what should be a very robust third quarter. Investors who play their cards right could make fortunes during the second half of 2014. Selectivity will be key as a rising tide will not lift all boats (more boats hopefully will sink and thus further reduce the clutter of garbage that remains floating on the sea of the Venture).
The many nervous nellies who were following the crowd out of Gold and Silver and the junior resource sector over the last year, even during the last couple of months on a normal and healthy pullback in the Venture, made a profound miscalculation, but that was the final capitulation that perhaps was necessary. It was the mirror image of almost everyone “all in” in late 2010/early 2011 when the market topped out and then plunged by two-thirds in just over two years.
The Venture surged 29 points last week on increased volume to close Friday at 1026, its highest level in more than three months. The Venture has been telegraphing a sentiment turn in Gold by out-performing the yellow metal for about a year – that was a very telling pattern change, and we’ve just started to see the significance of that with bullion’s fresh breakout.
The Venture, Gold, Crude Oil, the CRB – they’re all telling us the same thing: Inflationary pressures are finally starting to click in, and central banks around the world – in particular the Fed – are going to be caught behind the curve. At some point, interest rates will have to increase, and that’s also going to cripple governments from Ontario (voters there just got sold down the river by a fiscally/economically illiterate Kathleen Wynne) to Washington to Japan, and Gold is going to skyrocket – but that’s another topic for another day.
Let’s look at where the Venture is currently at, both in terms of new support and resistance.
The rapidly increasing buy pressure and the volume uptick reflect a growing understanding among astute traders and investors that the Venture is indeed in a bullish new cycle that should result in stellar gains during Q3. While RSI(14) on this 6-month daily chart is now in overbought territory at 75%, it’s very possible these conditions could persist for a while given the intensity of the momentum. Keep in mind, the Venture’s 50-day and 300-day moving averages (SMA’s) are just now reversing to the upside – this is powerful confirmation of an impending bullish advance. The bulls are in control and they are going to set the pace.
It could take a little time for the Venture to grapple with a resistance band between 1030 and 1040, but there is very strong support around 1010. The possibility of a rapid surge through the 1050 March high certainly exists. The 1050 area will be taken out – the only question is how soon, not if.
http://www.bullmarketrun.com/?p=22451
The many nervous nellies who were following the crowd out of Gold and Silver and the junior resource sector over the last year, even during the last couple of months on a normal and healthy pullback in the Venture, made a profound miscalculation, but that was the final capitulation that perhaps was necessary. It was the mirror image of almost everyone “all in” in late 2010/early 2011 when the market topped out and then plunged by two-thirds in just over two years.
The Venture surged 29 points last week on increased volume to close Friday at 1026, its highest level in more than three months. The Venture has been telegraphing a sentiment turn in Gold by out-performing the yellow metal for about a year – that was a very telling pattern change, and we’ve just started to see the significance of that with bullion’s fresh breakout.
The Venture, Gold, Crude Oil, the CRB – they’re all telling us the same thing: Inflationary pressures are finally starting to click in, and central banks around the world – in particular the Fed – are going to be caught behind the curve. At some point, interest rates will have to increase, and that’s also going to cripple governments from Ontario (voters there just got sold down the river by a fiscally/economically illiterate Kathleen Wynne) to Washington to Japan, and Gold is going to skyrocket – but that’s another topic for another day.
Let’s look at where the Venture is currently at, both in terms of new support and resistance.
The rapidly increasing buy pressure and the volume uptick reflect a growing understanding among astute traders and investors that the Venture is indeed in a bullish new cycle that should result in stellar gains during Q3. While RSI(14) on this 6-month daily chart is now in overbought territory at 75%, it’s very possible these conditions could persist for a while given the intensity of the momentum. Keep in mind, the Venture’s 50-day and 300-day moving averages (SMA’s) are just now reversing to the upside – this is powerful confirmation of an impending bullish advance. The bulls are in control and they are going to set the pace.
It could take a little time for the Venture to grapple with a resistance band between 1030 and 1040, but there is very strong support around 1010. The possibility of a rapid surge through the 1050 March high certainly exists. The 1050 area will be taken out – the only question is how soon, not if.
http://www.bullmarketrun.com/?p=22451
