Do These Higher Volume Days For GDX Foreshadow A Breakout?
Last Friday and yesterday GDX saw volume right around the 100 million shares mark. Both of these days were up days as well. Doc and I discuss if these couple days of increased volume are enough to get him more excited about a potential breakout. We also discuss the USD and it’s importance to close the week slightly higher than it is trading now.
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Doc just following up on your recent comments this week, you still think GDX will retest the lower end of Bollinger bands around 21 this spring say somewhere around May/June and that could be last great buying opportunity in gold stocks before we start an upward move and a bigger breakout end of 2018 or for sure 2019.
Paul, in what I’m watching technically, that’s the most likely scenario.
Paul, I might add that technically a lot of these PM stocks suggest this year as their last year for a low going forward.
I agree. You figure the last vestiges of the bear market will be dropping away from the 200 WMA calculation by the end of this year. So there really shouldn’t be anything holding the weekly picture back. Of course, things like a declining 100 month MA could be an issue thereafter.
Gold heading for a 3 year breakout and then a major move possible toward 5 year highs around 1500 once 1400 falls.
Yes, someone gets it!
Eventually.
Yes, and the sun will burn itself out in 16.9 billion years. Is it time to start making arrangements?
Classic negative divergence in the miners today with gold and silver and the stock market. Sure, they may be dragged higher in the short run (like if $gold pops $100 from here they may go up 5%), but when gold finally rolls over, they will go down like a $5 hooker.
UDN (dollar index bearish fund):
http://stockcharts.com/h-sc/ui?s=UDN&p=W&yr=7&mn=0&dy=9&id=p33954640439&a=577928307
If anyone was wondering why the dollar turned down where it did, speed line resistance appears to explain it:
http://stockcharts.com/h-sc/ui?s=%24USD&p=D&yr=1&mn=3&dy=13&id=p65500315583&a=557864429
Speaking of speed lines, here’s the U.S. 30 year bond priced in gold and it doesn’t look good:
http://stockcharts.com/h-sc/ui?s=%24USB%3A%24GOLD&p=W&yr=6&mn=6&dy=0&id=p44063681231&a=542652984
Ira’s metals yesterday
https://youtu.be/elUzot8XsmE?t=32