Nice, the miners are going green after a tough start. But GDX has not taken back the SMA 50, which it lost this morning after dumping out of a bear…
The longer the correction has gone on the more it has moved from the look of a minor topping pattern to a potential consolidation pattern, with the overbought readings addressed…
Daily GDX has not broken down. I would not rule out a bounce to fill the gap above 28 and possibly test the SMA 50. It's obviously a bearish look…
It does not mean that the pullback in the miners (and gold/silver) is over but it does mean that an annoying issue is being addressed today. HUI has not quite…
Notice I wrote "begins" in the title. Today was the first real day of regurgitation with conviction. Long-term support levels are going out the window and that is great, if…
Gold stocks are not responding well to the deflationary whiff in the air and I continue to think that is because they got caught up with the inflation crowd (gold…
A quick look at daily chart parameters for GDX and GDXJ. GDX has dropped to the SMA 50, which is a support level. The chart is intact as long as…
For we gold bugs in the NFTRH sphere, let's have a specific update on a subject that is hitting my inbox a lately; a potential buy area for the miners.…
I am not bullish on the miners as a group because the technicals are bear biased and the fundamentals are not nearly all in place. But the ones I hold…
Using the GDX and GDXJ daily charts, I thought I’d show some previous examples of bull flags so that now we can note potential bear flags. This is of course all speculation because a pattern isn’t activated until it resolves, but for reference here is an update from June 28 in which we noted several potential bull flags, which went on to resolve as expected.
Daily technicals with no cluttering fundamental or sentiment commentary.
HUI hit resistance above 240 in the form of the neckline to a pattern that could actually prove bullish. I have been thinking at least the first gap may fill but so far, it’s not happening. The pattern, which some would call an Inverted H&S (bullish reversal) is actually a consolidation of some kind with a bullish look to it. If it were to play out that way it measures to around 275.
A technical update using daily charts for those micro managing the daily moves and shorter-term trends. Fundamentally, I like that the stock market and crude oil have reversed downward today, but one in-day reversal there does not change recent fundamental discussion just yet. But it is reflective of what would need to be happening on a sustained basis for me to get aggressively bullish the gold sector.
Here we play the short-term technical game again despite the gold sector running against its own fundamentals (i.e. as the ‘inflation trade’, including mining cost input oil, continues higher). At some point this will matter.
But on the other side of the coin are price, momentum and technicals. A Monday open can be a tricky thing, but as of this moment GDX is in a posture to break the most recent consolidation.
The precious metals were due to pull back and here is a pullback. Please review this morning’s post for a look at how the macro market is setting up for the gold sector’s next bullish phase. Remember that we launched fundamentally based on gold’s out performance of nearly everything else, as indicated by the weak silver-gold ratio. But the rally matures as silver vs. gold matures.