Finally, gold is cheap.
In its latest fund manager survey, Bank of America Merrill Lynch noted that on a valuation basis, gold was viewed as “undervalued” by fund managers for the first time since August 2009.
At around current prices, almost every buyer since 2009 is holding a losing position, so it’s either time for a further drop or a bounce higher: the current price won’t be sustained.
And by at least one measure, people think gold is a buy.
Seadrill and other Oil-Related stocks may be bound for a final bottom, just like oil.
Both the MACD and RSI have recovered sharply in 2015 after a dramatic drop in price late 2014.
If price makes lower lows, I think the RSI and MACD will set higher lows, creating positive divergence.
Once that happens, I will add to my position.