Gold Stocks at Key Support

July 03, 2023

by Adam Hamilton Zeal LLC

The gold miners’ stocks continue to grind lower in their latest correction, leaving increasingly-bearish sentiment in their wake. Even contrarian traders have mostly abandoned this high-potential sector. But the leading gold-stock benchmark has just converged with two key support zones. After the last time this happened, major gold stocks quickly rebounded over a third higher. So today looks like a good buying opportunity.

Stock trading is simple conceptually, buy low then sell high. But this plain mission is difficult to execute for the vast majority of traders. They get caught up in herd sentiment, leading them to do the opposite. Exciting popular greed as sectors top seduces them into buying high, the exact wrong time. Then after the subsequent sentiment-rebalancing selloffs, excessive prevailing fear scares them into selling low for big losses.