Quality companies like Franco Nevada and Kirkland Lake are filling gaps
Make no mistake, the HUI Gold Bugs index is technically bad and if we’re sticking to the letter of the technical law, potentially very bad (based on downside targeting). But a couple of quality items beg the question of whether at least a bounce can come about soon.
FNV has its sights set on a gap fill and maybe a test of its now uptrending SMA 50. Hardly looks like a disaster in the making. I used FNV’s false breakdown and reversal back in February-March to indicate leadership of a new rally. Now I wonder if its relative strength means anything.
KL looks fine too, if you define “fine” as not broken but also not trending up. Both charts are being driven to fill gaps by the greater hysteria in the precious metals.
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