Two gold miners, two different technical messages
Just for fun as I maintain my balance, not only in the gold stock segment, but across the whole of the markets, I want to present a look at the daily charts of two prominent gold miners. This with the understanding that GDX and HUI have not yet disqualified their A-B-C corrective potential to new lows (but they continue to hold the support noted in yesterday’s update.
AEM looks like it’s on the bear plan, with a Head & Shoulders pattern forming. Earnings is upcoming on April 30th.
On the other hand, fellow large miner NEM just reported earnings, beat handily on both earnings and revenue and, well, you can see the reaction (+6.7%) and a chart that is retaining its uptrend and looking healthy. As a side note, AEM’s chart is also in an uptrend. It’s just got an ugly pattern sitting on that trend.
It bears looking closer at NEM’s earnings to see what the drivers are. Also, what may or may not have been said about Energy-driven costs. Remember, the war started in the last month of the quarter and we don’t know how much effect the rising oil price had in the January-March numbers. But we need to get on this.
I am going to try to remain balanced in the sector pending more information, like earnings for AEM and other gold miners upcoming, as well as the war’s status and its effects on oil (miner cost driver).
