Followers | 679 |
Posts | 141044 |
Boards Moderated | 36 |
Alias Born | 03/10/2004 |
Saturday, January 25, 2020 8:44:41 AM
By: Erin Swenlin | January 24, 2020
* (Click Read Full Story »»» at the bottom of the page for the charts to appear on the post)
Gold Miners have been on fire this week! Each Friday, I get a Weekly ChartList Report on the ETF Tracker ChartList that Carl and I have developed. If you would like it, you'll find it in the DP Trend and Condition ChartPack (free to Extra members and above!). Nearly every day, I have seen Gold Miners near the top, so it wasn't surprising to see it at the top on the Weekly Report. DecisionPoint has developed a "Golden Cross Index" (GCI) and "Silver Cross Index" (SCI) which tell us how many stocks in those indexes or groups have 50-EMAs above their 200-EMAs (GCI) and how many have 20-EMAs above their 50-EMAs. We have the GCI and SCI for Gold Miners, so I thought I'd share some extra insight.
Below is the daily chart for GDX, the Gold Miners ETF that we track. The chart shows a textbook "cup and handle" chart pattern. It began to execute this week, with the breakout from the declining tops trend line that is the "handle" of the pattern. The PMO is confirming this breakout as it rises to likely give us a crossover BUY signal. Another plus on the daily chart is the positive divergence between OBV rising bottoms and declining price lows.
We are seeing a pullback on the Silver Cross Index, as well as a drop below the signal line. I find this healthy and appropriate right now, given how overbought this group was. It still is at a healthy reading of 80, meaning 80% of the Gold Miners in this ETF have 20-EMAs above 50-EMAs. Now, as price breaks out from the handle, we do want to see the SCI begin to turn back up to confirm; it isn't right now, which could be a problem if this rally is to be sustained. On the other hand, the Golden Cross Index looks great, albeit overbought. It is rising and, as you can see, since the end of summer it has maintained mostly above 80. Overbought conditions can persist in a bull market rally.
Below is a weekly chart of GDX. Here it looks as though a flag has executed. The big area of overhead resistance lies close, at $31. The weekly PMO has turned up after this week's rally.
Conclusion: Overall, I'd say Gold Miners have the potential to continue higher. The Silver Cross Index is pulling back and overhead resistance is pretty close, but the daily and weekly PMO are confirming and not overbought, the chart pattern is very bullish and I like the positive divergence of the OBV on the daily chart. If you haven't checked out our new website DecisionPoint.com, I invite you to come see it and sign up for our free email newsletter!
Technical Analysis is a windsock, not a crystal ball.
Happy Charting! - Erin
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent GOLD News
- Barrick Announces Extensive Exploration Partnership with Geophysx Jamaica • GlobeNewswire Inc. • 05/01/2024 10:15:00 AM
- Barrick to Ramp Up Production As It Remains On Track to Achieve 2024 Targets • GlobeNewswire Inc. • 05/01/2024 10:00:00 AM
- Barrick Declares Q1 Dividend • GlobeNewswire Inc. • 05/01/2024 09:59:00 AM
- Barrick Announces Election of Directors • GlobeNewswire Inc. • 04/30/2024 08:15:55 PM
- Barrick On Track to Achieve 2024 Targets • GlobeNewswire Inc. • 04/16/2024 11:00:00 AM
- Notice of Release of Barrick’s First Quarter 2024 Results • GlobeNewswire Inc. • 04/09/2024 11:00:00 AM
- Strategy-Driven Barrick Builds on Value Foundation • GlobeNewswire Inc. • 03/28/2024 09:20:38 PM
- Barrick Hunts New Gold and Copper Prospects in DRC From Kibali Base • GlobeNewswire Inc. • 03/20/2024 02:00:00 PM
- Barrick Opens Academy at Closed Buzwagi Mine • GlobeNewswire Inc. • 03/18/2024 08:00:00 AM
- Barrick to Grow Production and Value on Global Asset Foundation • GlobeNewswire Inc. • 03/15/2024 11:53:01 AM
- Loulo-Gounkoto Delivers Another Value-Creating Performance • GlobeNewswire Inc. • 03/10/2024 10:00:00 AM
- Passing of the Right Honorable Brian Mulroney • GlobeNewswire Inc. • 03/02/2024 01:17:35 AM
- Kibali and DRC Partner to Promote Local Content • GlobeNewswire Inc. • 03/01/2024 02:22:43 PM
- Tanzanian Parliamentary Committee Lauds Barrick’s Work at North Mara • GlobeNewswire Inc. • 02/23/2024 12:00:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/14/2024 10:28:08 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/14/2024 08:05:25 PM
- Clear Strategies and Strong Partnerships Set Barrick Up to Outperform, Says Bristow • GlobeNewswire Inc. • 02/14/2024 11:00:00 AM
- Barrick Announces New Share Buyback Program • GlobeNewswire Inc. • 02/14/2024 10:59:00 AM
- Barrick Declares Q4 Dividend • GlobeNewswire Inc. • 02/14/2024 10:58:00 AM
- NGM Strongly Positioned for Growth • GlobeNewswire Inc. • 02/10/2024 01:00:16 AM
- Form SC 13G - Statement of acquisition of beneficial ownership by individuals • Edgar (US Regulatory) • 02/08/2024 03:03:08 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/08/2024 12:46:55 PM
- Geologically Driven Asset Management Delivers Barrick’s Third Successive Year of Reserve Growth at Sustained Quality, While Unlocking Embedded Growth Portfolio • GlobeNewswire Inc. • 02/08/2024 12:00:00 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/01/2024 06:04:56 PM
- Africa’s Largest Gold Mine Now Also One of Its Greenest • GlobeNewswire Inc. • 01/29/2024 04:00:00 PM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM