Valuable Insights from Around the Web – Thu 7 Dec, 2017

A 6-Pack Of Metals Charts

Chris Kimble first shared the charts below about a month ago stating that gold and precious metals in general were at an importation juncture. Follow through to today and these charts are all breaking down. Check out the charts below to see the worries Chris has.

As a quick comment when we see so many people and chart turning negative on the metals at this time of the year there are still plenty of opportunities for investors. There are stocks cashed up and releasing some great numbers but the market does not care.

Click here to visit Chris’s website for more technical commentaries on a wide range of markets.

… Here’s the postings from Chris…

Gold and Precious Metals Sector At Important Juncture!

Investors are right to be a little concerned when looking across the metals sector of late.

Gold (NYSEARCA:GLD), Gold Miners (NYSEARCA:GDX), and Steel… there all in a short-term decline and approaching critical price support levels. Most of these are trend lines so bulls want them to hold.

In the the chart below, you can see 6 different angles on Gold, the Gold Miners, and steel.  And in each of these snapshots, you can see that price action is nearing important trend line support levels.

The short-term and long term are converging here, so perhaps the next move will have a meaningful impact on your portfolios.

Stay tuned!

gold precious metals price support important_november

…And the follow up comments…

Gold/Precious metals could be in trouble here

Back in early November, I shared a 6-pack of charts showing that Gold (NYSEARCA:GLD) and the broader metals sector were all testing key price support levels.

Well, those price levels appear to be giving way to the downside. And this could be warning of lower prices to come. In the updated 6-pack of charts below, you can see blue trend lines for various charts of Gold, the Gold Miners (NYSEARCA:GDX), and Steel (NYSEARCA:SLX). In each of the charts you can also see where price is declining through the trend line (red shaded areas). The most watched and notable is the Gold decline.

Each of these breakdowns are still in the early stages and will need to see a follow through day to the downside (with strong volume) as confirmation.

Put these on your radar. Caution advised here.

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Comments:
  1. On December 7, 2017 at 11:03 am,
    Matthew says:

    The bounce that I’ve been expecting never happened but, despite being wrong, I’m fine with that.
    The more the sector can drop without coming up for air, the better the odds will be for a significant low to happen sooner rather than later.

    I’ve been buying SILJ lately, including today, but still think it will probably fill the big weekly gap from April, 2016. It will be a bullish sign if it doesn’t get filled.

    http://stockcharts.com/h-sc/ui?s=SILJ&p=W&yr=5&mn=0&dy=0&id=p72122900591&a=526433040

    • On December 7, 2017 at 12:18 pm,
      Excelsior says:

      Agreed that it would be better to get the deeper plunge out of the way now.

      I had mentioned back in October when things were starting to fizzle, instead of continuing the good run in September, that we’d likely see a pullback into mid December during the end of tax loss selling, and before the FOMC meeting on next Tue/Wed (Dec 12th & 13th). This is where it seemed like the best place to lay on the last tranche of dry powder for 2017.

      This is the exact same pattern we saw play out in Dec of 2015 and Dec of 2016 where things sold down to their lows in mid December, with all the rumblings and worries over the rate hike, only for the metals to and miners to recover in late Dec and surge in Jan/Feb/early March. It wouldn’t surprise me at all if we see that same pattern play out again.

      As a result, I’ll be adding to my Silver/Gold stocks the rest of this week and beginning of next week into the carnage, but expect the bounce to commence at the end of next week.

      Good luck to everyone in their trading.

      • On December 7, 2017 at 12:50 pm,
        Wolfster says:

        I’m waiting til after the FOMC meetings. Would rather be late than early. Making money with small caps right now and hoping their run continues another week. Just once it would be nice if everything fell the way I planned it. 🤞

        • On December 7, 2017 at 2:04 pm,
          Excelsior says:

          You’re a much wiser man than I am, because I did a little nibbling on the beat down PM stocks this afternoon.

          My thinking was often things get trashed on Thursdays, but then rebound slightly on Fridays. I’m saving the rest of the dry powder for Mon/Tue in case their is a panic sell prior to the FOMC.

          Regardless, there is no rush as usually late December is a thinly traded time of year. The last week after the holidays often presents some unique opportunities in the Jr miners when nobody is really paying attention to the markets.

          If I’m wrong about things bouncing in the 1st Quarter of 2018 then I’ll take my scrapes and bruises, but it’s been a profitable trade the last few years, and I can’t be the only one that remembers the Q1 run in 2015, 2016, and 2017.

          Cheers and good trading Wolfster.

  2. On December 7, 2017 at 11:09 am,
    Matthew says:

    A high is likely very near for the Dow versus the gold miners (DIA:GDX):

    http://stockcharts.com/h-sc/ui?s=DIA%3AGDX&p=D&yr=1&mn=0&dy=18&id=p90721628331&a=561197322

  3. On December 7, 2017 at 1:29 pm,
    Matthew says:

    GLD bounced off of today’s low after precisely hitting some fork support and has now retraced about half of its 2017 move…

    http://stockcharts.com/h-sc/ui?s=GLD&p=D&yr=1&mn=0&dy=13&id=p24763776709&a=561270001