alice

Gold Stocks’ Consolidation Progress

A simple update to gauge the progress of the miners as they work through the consolidation/correction.

GDX and GDXJ did indeed break down from the bear flags we noted during the trading day on Friday.

gdx.gdxj

Using the daily HUI chart from NFTRH 405, we note the upcoming support zone in the 230’s to 240.

hui

There are no guarantees in any market, but I tell you that given a choice between the sector rising or dropping into FOMC, I’d take ‘sector dropping’ any day.

In #405 we noted some preferred gold stocks and yesterday I took a shot and added one of them, Royalty/Streamer Franco Nevada (FNV) due to this chart.

fnv

As noted, there will come a time when a real correction comes about, but until then my tack will be to sell surges and buy pullbacks as long as the uptrend remains intact, which it is.  At such buy points a ‘stop loss’ would be a break of the uptrend.  As a buyer now, I feel aided by the newly over bearish sentiment in the sector.

Not that I recommend this one (because its investor base has been infected by the large subscriber base of at least one (in my opinion) less than reputable source, but I also added back AAU on the pullback toward support.  It can settle further and as before I will not have an over abundance of patience with it, but I figure a lot of the panic buyers have been wrung out of it.

aau

The above are examples of the technical situations I am looking for.  Also watching BTG, NGD, SSRI, KGI.to, PG.to, SAM.to, etc.