There are big gaps open up and down from current price. But price is filling gaps down while being rejected by gaps upwards.
The sector is weak and I expect the downtrend to continue.
Mercury Rev
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So holes..that is the key. Filling price holes
Target 28-30 for the last part of the year.
If you make a ratio of Gold Juniors to Gold Majors, you will find that there is an arc in the making since 2010.
It looks like we are about to enter the fun side of the arc, where juniors outperform majors.
This is historically often a sign of liquidity and luster returning to gold, in the form of rising gold prices, and risk securities outperforming.
Got Juniors?
Gold has risen over the last year due to the pandemic, inflation due to excessive money printing and now the conflict in Ukraine.
GDXJ - the junior gold miners have broken out of their down trend channel and has retested. Once the price of gold hold up there should be a lot of upside potential for gold miners. If they can control the cost of extraction then they...
Think there is a high chance GDXJ could visit 50-52 in next next weeks with gold also rising to 1950$
Only with a weak gold and general market going down, GDXJ could move lower in the rest month (red target)
Has tested twice a strong support 37$ and rejected.
Think gold and GDXJ has legs.
Mean while some music I like.
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Looks as if Junior Gold miners have finally broken the year long downtrend and still got catch up to play to current Gold valuations.
If Ukraine crisis continues to unfold for a few more days or weeks, I can't see this being just a fakeout.
LONG AND STRONG.
Things are not easy in markets. They lOok bullish at a time and one week late they are not so.
Caution.
They could drop hard again, with gold and with general markets.
At last 40 is target for next week.
After that...... lets see if there is another leg up with gold also rising to 20XX or not.
All markets are going back to precovid levels. And gold hasn't yet.
Here we have an extremely similar setup to late 2015, right before the junior miners went on an epic tear. Note the divergence in the dynamic RSI oscillator, and how similar the action now is to 2015. The ratio also just broke out against the S&P.
Are you loaded up for this run??
Conviction: 3/5
May have a better entry point after more breakout from short-term channel (Aug 2020)
Main Thesis
Bouncing off MT support (2015)
Breakout and retest from previous downward resistance (2016) (Blue)
Risks
RSI-W may breakdown to more attractive levels
OR there may be another leg down for a bullish divergence
In this update we review the price action and options flow dynamics and identify the next high probability trading opportunity and the price objectives to target.
Very negative pattern and a bearish cross is forming. I think there's go to be a final flush back to pre covid levels along with the stock market. The whole stock market is going to get flush out IMO.
We are still at the early stages of a long term bull market
LONG now between 50 and 44 it's a good call long term and still get 200% and counting.
A drop in gold and the miners is still possible. Falling below 43 opens the doors below. Then a retest off the blue line makes sense.
LONG between 36 and 30.
Now if it falls further below it, be ready to empty your...
The GDXJ is showing bullish divergence on the weekly RSI reminiscent of January 2016. Then as now, we were at the start of a rising rate environment. The FED first raised rated in December 2015 and again in December 2016. We are due for a first rate hike in March this year. Will a similar move in gold & the miners follow?
After 18 months of consolidation and shaky global equity markets... gold's constructive (commodity price action) is showing that it is increasingly gaining acceptance as the place to hide.
Spot gold looks to be breaking out and the equities are expected to follow.
