Janney Believes Decline in Gold Could Be Precursor to Bull Market in Equities

Janney Capital technical analyst Dan Wantrobski issued a bullish macro note Tuesday, suggesting the recent nosedive in gold could be a sign of a coming bull market in equities. Wantrobski believes gold could be caught in a "massive trading range" over the next few years. In the case of a bounce in gold to the $1,540-1,550 per ounce range, the technical analyst said he would still feel like "a large, multi-year distribution top is being built." In addition to gold, Wantrobski sees a number of other commodities being rangebound amid a bull market in stocks. The analyst specifically pointed to a head and shoulders pattern which has been forming in cooper since 2009. The Janney analyst warned of weakness in stocks over the short to medium term as the end of the current bear market will create periods of "significant shake-out." Following Monday and Friday of last week's major decline, COMEX gold is bouncing Tuesday. The front-month contract for the metal last traded up around 0.7 percent to $1,370 per ounce.