The previous update gave an analysis-backed opinion of the future course of gold stocks and the macro in general on a bigger picture.
This update dials back to the 3 indicators we are watching for near-term focus. The Silver/Gold ratio, TSX-V and TSX-V/TSX ratio.
SGR continues to nest on the 50 day moving average. As such, it has a bullish bias. When silver leads gold the indication is usually positive for precious metals and commodity/resource related stocks. As yet, neutral w/ slight bull bias.
TSX-V is still constructive and also biased bullish. It needs to take resistance at 1040 (+/-) to firm up a bullish situation.
TSX-V/TSX is still grinding the SMA 50 and a resistance area within its downtrend from the January high. The steps needed to really turn this bullish are…
- Take out the SMA 50 (blue)
- Take out the May 13th high
- Take out the SMA 200 (orange) and the April 17th high
Sounds simple enough. But it may not be so simple. We’ll take the 3 of these day to day, week to week to gauge success or failure.
