Jeb Handwerger Sees Support For Gold At These Levels

Unlike this Barclays techncial analyst, Jeb Handwerger sees gold as still in a rising channel that provides support at these levels. Consequently, he thinks gold is in buying-opportunity mode right now.

Gold is now at my buy point of the rising long term trend support line (click on chart...). GLD touched that line 6 times, which signifies that this trendline is a reliable point of support. The significance of this line is that it is not steep, which also brings a higher probability that GLD will find support here. It is also oversold. Continued weakness here and a break below this long term trend would be troubling and highly unlikely. If there is a break most likely it would be exhaustive, meaning that it will shake out a lot of shares before the next move higher. I do not see $1200 as a top in gold as there are no technical signs of a major top.

He also sagely notes that the best time to buy usually makes the buyer uncomfortable. To extend his winter-coat-in-summer analogy, it can be awkward sporting a winter coat around in the heat.