A brief snapshot of several gold/silver stocks (in no particular order) that I either hold or have on radar…
Royal Gold just about touched support, which coincides with the SMA 50.
Newmont remains in a ‘higher highs, higher lows’ stair climb after nearly hitting the SMA 50.
Sandstorm is still climbing the stairs as well after reaching short-term support.
Klondex found short-term support at the EMA 20, just above the top of its still-bullish pattern.
GSV lurks at the EMA 20, trying to use 2.70 (the area of the Oct. high) as support.
SLW hit short-term support and nearly made it to the SMA 50.
SSRI never did get to clear support at 10 to 10.50. This could be a sign of the relative strength of a quality stock or it could have more work to do. Either way, the stock continues to be in a bullish setup for those with time horizons longer than a day trader.
Hopefully this cross section of the sector gives a good view. Everything above is still intact to a ‘pullback within a constructive situation’ theme we have been managing. Pre-market is positive and it is possible the pullback is ending here. But it could also be a bounce within a still-in-progress correction. We’ll watch the nature of the bounce and see if the items that have lost their short-term 10 and 20 EMAs can take those back.
Bottom line though, is that everything continues to be ‘normal’ to a routine and healthy pullback scenario as HUI has held above the 195-200 support area (hitting 204 yesterday).
On a more macro picture, I continue to think the gold sector will be ready for prime time only around the time when the broad markets top out. Counter-cyclical is still preferred over an inflationary party atmosphere where everything is going up.