‘+’ updates have thus far been on non-precious metals items because of the extended grind of would-be bottom patterns in play for the last year, and because other items have had more definable and actionable setups. This morning I want to look ahead at the juniors and explorers since the patterns are maturing.
A snapshot of the current technical status of key ETFs…
GLD filled gap, which now closes out the geopolitical hype and leaves gold on its own right at key support. Still not a constructive looking chart. A rise above the SMA 200 and then the 50 makes it constructive.
Yesterday we had some supports threatened and in some cases broken. Today these are being repaired. Further, the Silver-Gold and GDXJ-GDX ratios remained at a potential bottom and a short-term uptrend respectively.
There is not much new here, but I thought I would pass along an updated view by daily charts…
With Copper rising above the converged 50 and 200 day SMA’s (around 3.18/lb) and with commodities in general at do-or-die support, I wanted to put up a chart of COPX for future reference for you copper/base metals aficionados.
Here are a few of yesterday’s charts updated as today’s pivotal events (no pun intended) play out.
BBRY is a turnaround play, pure and simple. John Chen is at the helm and has a tough job ahead of him in re-branding this company from device maker to ‘internet of things’ software developer.
We’ll keep it simple in managing this morning’s decline. The silver support zone has been 19.50 to 19.75 (chart from NFTRH 300 below). The lower end of this range is getting tested this morning. Any lower than that and the situation becomes abnormal to a short-term bottoming view. A hold of that area ups the aggravation level but would probably be ultimately constructive.
The real or asset adjusted price of gold continues to make positive progress in several areas. Below we update gold ETF GLD vs. a few other asset classes, primarily commodities, which makes up the ‘real’ price of gold and the big picture macro plan per the top pane of this chart. If Au-CCI remains strong, the S&P 500 (lower panel) would be expected to weaken again at some point.
HUI continues to make good improvement by its daily chart, which means that the already constructive weekly chart is gaining the upper hand.
The market bounce is providing a potential opportunity for those who care to, to re-short. As you may know I covered a short on SPY on the recent decline and have been looking to re-enter it. The S&P 500 bounce target has been 1950 to 1960, but let’s refine the situation for the SPY.
HUI continues to make good progress but until the red neckline is crossed it remains in the same positive, but unconfirmed stance with regard to a new rally leg. The red dotted neckline is part of a downtrend channel just as the green dotted neckline is part of an uptrend channel.