FNV makes 62% Fib as expected, rallies

Franco Nevada stock (FNV) is a gold stock leader

FNV, which buys metal mined by ole’ Huey above, perfectly registered the support (including the 62% Fib retrace level) as noted likely in this September 27 post…

Gold stock leader Franco Nevada (FNV) burrowing toward a low?

Well, doink.

Yes, I bought it and no, there is no ‘all-clear’ yet for gold stocks. Quite the contrary actually, macro-fundamentally speaking. But you know, oversold sentiment rallies do happen and I suspect this one could be stronger than the previous ill-fated bounces since the secondary sector top in May. A decision on that for FNV may come right about… HERE. At the SMA 200.

franco nevada (FNV)

As for sector sentiment, a little perma-bullish birdie mentioned on Twitter that the Hulbert HGNSI showed gold letter writers and advisers epic over-bearish/contrary bullish (so where little birdie were the warnings to your herd when it was contrary bearish?) and in our own corner of the world NFTRH showed this deeply oversold view of the Bullish Percent Index (BPGDM).

By the way, we note that a bull market trend in this indicator ended recently. So too did bull market trends in other key indicators for the sector. But as NFTRH 675 noted…

The Gold Miner Bullish Percent index (BPGDM) is very oversold. We noted last week that a cyclical bull market [had long-since] ended in the HUI/SPX ratio and so too has a bull market trend in BPGDM. But this is the gold sector and trends are made to be broken, as are bugs’ spirits. I cannot stress strongly enough that the sector tends to blow out to the upside amid unsustainable euphoria and to the downside amid intense angst. Again, it’s how we roll. Take advantage of it, don’t listen to perma-promoters, and think like a predator.

The questions now are from what levels and when to think that way? Personally, I am remaining open to the possibility of change that we cannot see coming yet in the indicators. But if the sector bounces, spirits are renewed and the macro is still not playing ball well, you know… might want to tune out the cheerleading that will surely be amping up, at least.

gold miners bullish percent index

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