It’s a majority of the way through the day and while the miners are slightly positive volume has not ticked up. At some point on a theoretical right side shoulder we’d want to see volume start to come in.
Using the first stock I looked at, watch list item SILV, as an example, and with all due caveats about chartists staring at patterns, I am mindful of the potential for some of these gold/silver stocks to put in short-term bottom patterns. Of course, there are a lot of ifs going on here with the primary one being ‘if’ the pullback is arrested around current levels and the stock turns up to form a right side shoulder, ‘then’…
Here are a few stocks on my watch list and/or currently held.
As for SILV (on watch), it made a surge on good volume and is forming a potential right side shoulder of a would-be inverted Head & Shoulders pattern on lower volume. If it finds support in this general area and turns up the odds would increase for a rally. Even a short-term rally that is not yet THE rally (let’s also recall seasonals that bottom in December, on average) could then bounce to and test the SMA 200 (actual measurement is around 7.80 for SILV).
MAG is a silver stock I have on watch and it is similar but in slightly better shape than the above with RSI and MACD still positive.
SGSVF (SBB.TO) is not in a pattern but it does sport positive RSI and MACD and is nesting atop the SMA 50. It’s a watch list item.
AEM (currently held) is in the potential inverted H&S posture as per SILV.
As is GOLD.
Gold stock ETFs GDX and GDXJ are in similar patterns with similar volume characteristics.
With the counter-cyclical macro fundamentals grinding toward improvement the sector is primary on my watch. Hence the micromanagement of daily chart patterns like the above.