Gold & Gold Stocks Hit Upside Targets. Now What?
The precious metals sector has reached the upside targets we’ve written about since the start of 2017. Gold has touched almost $1250/oz ($1246/oz high) while GDXJ exceeded our $41 target and GDX nearly reached $26. The glass half empty case is the sector is now at strong resistance levels and any immediate upside will be difficult to sustain. On the other hand, the gold stocks are showing the internal (strong advance/decline line) and relative strength (leadership against Gold) that bodes for additional gains. There may be some more upside potential but the risk of a medium term correction looms in the background.
The image below shows the weekly bar charts for GDX and GDXJ. If the miners can make a weekly close above the strong red lines then there is a chance the rally can come very close to the 2016 highs before the next sustained correction. For GDX that is a close above $27.24 and for GDXJ that is a close above $42.60. It is also quite possible that GDX peaks at $27 while GDXJ, given its relative strength exceeds $42.60 temporarily.
GDX, GDXJ Weekly Bar Charts
The hourly bar charts (shown below) provide better insight for the next week or two. The miners appear to be digesting the strong gains achieved since the end of January. Look for another week or two of consolidation and digestion. Ultimately, if the miners make a daily close above recent highs then the upside targets are +$46 for GDXJ and +$28 for GDX. We are currently more confident in GDXJ than GDX.
GDX, GDXJ Hourly Bar Charts
Turning to Gold, it has lagged the miners but nearly reached $1250/oz this week. It closed the week at $1236/oz. There is a strong confluence of resistance at $1250/oz and we note the 200-day moving average at $1266/oz. If the rally has a bit more time left then Gold has a good shot to reach $1266/oz. Also, as we noted a few weeks ago, Gold’s performance against the other asset classes will help inform us if Gold can hold onto recent gains or if it’s headed for a big retracement. The bullish scenario would entail Gold maintaining recent gains against foreign currencies and bonds while showing strength against global equities.
Gold & Gold Ratios
Gold and gold stocks appear to have a bit more upside potential but the medium term outlook urges caution and patience. The miners and Gold are nearing strong resistance at a time when the US Dollar index could be firming around 100. Regardless of where and when this rebound ends, the precious metals sector could be poised for a big move higher following the next medium term correction or consolidation. For professional guidance in riding this new bull market, consider learning more about our premium service including our current favorite junior miners.
Jordan Roy-Byrne, CMT, MFTA
Source: https://thedailygold.com/gold-gold-stocks-hit-upside-targets-now-what/
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).