Doc answers Sally
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Hi Doc, thanks for the free tuition! The bollinger bands are flat and narrowing on the GDXJ daily chart, but pointing steeply downhill on the weekly chart. Is that a clue that price is likely to head south (and break through the lower band on the daily)?
Justine, good observation. Next week could tell the tale since momentum indicators (MACD on the weekly) will give you a clue. It’s interesting that GDX looks more at risk then GDXJ. Right now the strength indicators for a huge move down are not yet signalling a warning. Hope this helps.
My hunch is that the breakout will be to the upside, because we still have a few weeks left or the intermediate cycle in gold, and I think we’ll have a nice pop coming out of this low. The question is was the low today, or will the low be at the beginning of next week?
I sold my JDST today at a nice profit and purchased a little JNUG just in case this was the bottom today. If we go lower to 1220 zone next week then then I purchase even more JNUG.
I also just picked up a little Stillwater mining (SWC) because I feel that it is poised for rise above $15 in the near future with a mid term $18 target.
A bit risky without knowing what may happen next week, but just in case we get a nice pop next week, I’d rather be a little early than miss an explosive move up.
JNUG purchased at $30.02 is up to $30.40 in after hours trading, so that seems like a positive sign for next week. We’ll just have to see what the tone is by mid week.
thanks for sharing Shad……………………..appreciate the info………….j.
Right on J….The Long.
Go to stockcharts.com for charts. Under the charts is a title “overlays”—-click the down arrow and a number of technicals come up that you can click on—-click on bollinger bands. When you put a stock symbol in at the top of the chart the bollinger bands will then come up automatically. You can put in all kinds of other technicals based on the overlay section and other sections under the chart.
Thanks, Doc.
Here is another Bonzo. Same thing Doc mentioned but it is with a different service. At the bottom of the screen there is a little box that says “Add an Overlay indicator”. So you go in there and click on Bolingers or any other indicator that appeals to you and then redraw the screen. You will see what I mean once you try it. Here is the link…..
that was a clear BBands explanation Doc.
Bonzo you can go to chartschool on the Stockcharts site & take it from there..
Agatha, I agree. It takes some time to learn about charting but if you just start to read the glossary about some of the indicators, plug some of them into the charts and then play with them with multiple chart symbols. After awhile what sounds and looks like Greek actually starts to make some sense. Then it’s a matter of time only for someone to become somewhat proficient through experience. Of course, it’s like many things in life; if you don’t enjoy it, you won’t put the work into it.
It all makes you cross-eyed at first. But its definitely worth the effort.
Richard,
What sounds and looks Greek these days might soon be worth 1/2 of what is currently worth 🙂 🙂 🙂
Best & have a good WE,
LPG
Typo above. Should read:
“1/2 of what IT is currently worth”.
Apologies,
LPG
Thanks Doc. GDX does look weak and taking the various charts together things look too risky to bet on another leg up in the miners until we have some MACD confirmation as you suggest. Shad, I’m thinking next week for the low but will be interested to hear what Gary says.
Also, the $hui looks very vulnerable now.
Gold for the Weekly Close 02/06/2015 Posted on February 6, 2015 by Martin Armstrong
Gold peaked on our target week at the 1307 level failing to get through the first line of key resistance at 1310 intraday. Gold also failed to close above 1298 on a weekly basis. Today, the key support lies at the 1226 level and a weekly closing beneath this area is require for the break. Keep in mind that volatility should start to rise for the next two weeks and we see turning points targeted for the weeks of 02/16 and 03/02. Everything else remains on track.
http://armstrongeconomics.com/2015/02/06/gold-for-the-weekly-close-02062015/
Yes Doc. I seek 186 and 181 as being strong support in HUI should gold and stocks break lower this week. If those levels were touched, I’d be a buyer.
I do agree with you Justin. GDX looks weak, and I’m almost thinking about just using the new Sprott ETF (SGDM). It has a very solid roster of producers and streaming companies in its portfolio and seems like the better bet long term.
I like GDXJ as the more spicy ETF since the juniors have more fluctuation, but honestly, I play a little more high-risk speculation with the JDST/JNUG vehicles when I feel there is a directional trend in GDXJ. I also follow a number of the miners held by GDXJ individually and try to get an overall grasp of what is coming by looking at some of the key holdings.
Honestly, the first few days of next week are very risky, and I took a small position in JNUG as a speculative bet, that Friday was the low, and Monday may be the beginning of an uptrend in Gold as Roger W. mentioned earlier in the week. I am prepared that we may go down an test 1220 level in gold and $24.79 level in GDXJ on Mon or Tues and will add to positions if that happens.
Another Greece ba-da-bing: tic toc
http://www.zerohedge.com/news/2015-02-06/eurogroup-gives-greece-10-day-ultimatum
LPG
If the new government dares to choose the Greixt, I will solute them. But I don’t think so. They will choose surrender but they want the best deal. Just my guess. I don’t know about situation there.
Lawrence, The Greeks will be permanently trapped if they accept a deal from the ECB. Divorce is the only way to have a future with this terrible marriage.
I think so but they will pay dearly for their past stupidity one way or the other.
I think they can choose between martyr of freedom or slavery. Sad.
DT…I agree…They can then make deals with whoever they choose.
Mybe this is why gold is down today?
Hi Doc, where does one find the Bollinger bands for a stock?