Gold/Silver/Miners... the tide is turning in our favour

[vand]

Recent price action has been very bullish. Firm medium-term uptrends have now been established.

GDX action has been particularly noteworthy.

Remember this is a sector that tripled within 6 months during the first half of 2016. It could easily do so again if gold continues attracting buyers.

Look at the performance of GDX vs the stock market in the last 6/12 months:

 

 

[Shinus73]

Good - my SIPP is heavily weighed down with gold and silver mining stocks and needs a boost!

Up 5% yesterday though.

[Kookaburracollector]

21 minutes ago, Shinus73 said:

Good - my SIPP is heavily weighed down with gold and silver mining stocks and needs a boost!

Up 5% yesterday though.

Mine too, plus my trading account..which more than paid for my Gruffalo purchases yesterday😀

All hinges on the Fed minutes at 7pm now...let’s hope Gerome is Dovish!

[vand]

GDX now up 25% in June, and has taken out all intermediate highs since late the baby bull explosion of 2016.

[Abyss]

https://www.tradingview.com  - Free charts

Red/Green candles Gold price / Yellow GDX. Gold has broken through its 2016 high price $1370 but GDX was at the time 31.5 we currently trading GDX 26.16.

[vand]

Gold up

Silver up more

Miners up even more

 

Everything as it should be under "normal bull market" conditions

[vand]

Technical setup is starting to look very good.

While I can't guarantee that the intermediate bottom is now in, the metals themselves have corrected as much as they need to. Meanwhile the mining sector has behaved itself impecabbly and shown excellent relative strength, indicative that its anticipating higher metal prices ahead.

 

While the dumb money is chasing an incredibly stretced stock market, the smart money has been patiently positioning itself the PM sector for the next  leg up. Let's see where we are by Easter.

 

[silenceissilver]

34 minutes ago, vand said:

Technical setup is starting to look very good.

Not again, the summer was bad enough already!

[vand]

1 hour ago, silenceissilver said:

Not again, the summer was bad enough already!

Weak hands need to be flushed out.

[ilovesilverireallydo]

2 hours ago, vand said:

While I can't guarantee that the intermediate bottom is now in, the metals themselves have corrected as much as they need to

I think we will see a small window of opportunity in Early Jan at $1450 after which I am suspecting a multiyear bull run cycle. 

[vand]

Simple TA interpretation that the current consolidation pattern is complete:

 

The scuttlebutt is that the bullion banks are heavily short and could easily get short squeezed if they can't keep a lid on the price

[vand]

Bullish action.

She looks ready to run..

[5huggy]

- Im enjoying this!!!!!!!!!!!!!

[vand]

I think it's time for one of these:

[vand]

Short squeeze is on.. 

[Frenchie]

.

[Frenchie]

1 hour ago, vand said:

Short squeeze is on.. 

Right, but I think that a retracement and a successful retest around  1500/1520 , see 1480, would be healthy. The market seems to believe  it with a divergence as miners were flat to down on Friday. I am curious to see if they are going to catch the gold trend or stay flat today. GDX (gold miners index currently at 29/29,50) is  still below its 6 years strong  resistance around 31/32. A breakout above this resistance would definitly make it skyrocket to the 50 area  so a 70/80% potential on the upside for miners

[vand]

The miners have been a bit laggy, but this is nothing unusual and is probably indicative of the nervousness of the early part of the rally. I expect a big catch up in GDX once its clear that the move is genuine and resistance from 2016 is  cleared. I would have GDX ~40 as a H1 2020 target.