NFTRH; Gold, Silver & Miners (Priority: Medium)

The stock market is negative this morning and I assume due to some negotiations to come between the two major Trade Warriors, the US and China the US dollar is down as well. These are good things for gold, obviously. But they are news headlines. So where are we at by the charts?

Gold made it to the top of our lower projected support area and is oversold.

Silver touched the key support area with perfection and is oversold.

HUI made it almost to the next support area in the 130s and is oversold.

It does not feel to me as though the capitulation is over (but then, I have not been sweating through it). But we have reached levels that imply lower risk buying (if you can stand more downside). For me, the exploration and junior miners can be slowly and selectively bought in and around this event because they do not move in line with the larger indexes, which are subject to margin calls and leveraged players being forced out.

We’ll update fully this weekend. But this update is simply to illustrate proximity to lower risk support areas. Volumes have increased in the miner ETFs implying some forced liquidations. Volume has not been epic however, but again I wonder how much bullish pressure there was to begin with as the sector has gone nowhere for so long. In other words, it’s not like a big batch of momentum players came in any time recently.

I am going to continue to try to pick off some positions here and there without trying to guess the bottom. But I am not by any means abandoning my high cash stance either.

I’ll be on the road for much of the day. Have a good one.