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.
For “best of breed” top down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed market updates and NFTRH+ dynamic updates and chart/trade setup ideas. Subscribe by PayPal or credit card using a button on the right sidebar (if using a mobile device you may need to scroll down). Keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar. Follow via Twitter @NFTRHgt.