Just how much damage was done to PMs after the selloff yesterday?
Jordan Roy-Byrne joins me today to share his thoughts on the precious metals sector after yesterday’s selloff. We look at the recent action in the gold and silver stocks as very encouraging for the overall PM complex however we probably won’t see a major move higher this year. We also address how the stock market, US dollar, and bond market are playing their rolls.
Click here to visit Jordan’s site and keep up with his technical outlook.
https://youtu.be/5haZ8gHxTjo?t=12
IRAS MORNING
GDX, GDXJ and SIL finished above their 20 hour MAs today and look poised for more strength tomorrow.
I read where that selloff in gold was big boys trying to dump positions to drive price down because they have ton of short position and could get caught in short squeeze. Cot reports show lot of shorts. Anyone hear same.
Jordan what about tax loss selling ahead of us what will that do to miners?
GDX is up 28% YTD so I wouldn’t count on much tax loss selling this year.
A convoy of buses carrying employees and contractors of a Canadian gold mining firm and its military escort fell victim to an armed ambush in eastern Burkina Faso, leaving upwards of 37 dead and 60 injured, some reports say.
The SEMAFO convoy was attacked by unidentified gunmen some 40km from one of its mines in the Est region despite an escort by local security forces. The total number of casualties is not yet known, and an official statement from the company only mentions “several fatalities and injuries.”
@RT
gng awhile ago was saying they couldnt work at at least one of their sites in Mexico due to the cartel violence.
Sounds to me this hard times around the world is having an effect on PM mining.
Maybe its always been that way, a few years ago isis drove a miner in Mali into closing, the french moved in and drove isis out and the share price surged.
I bought more JAG at .11 yesterday after it hit fork support at .105…
https://stockcharts.com/h-sc/ui?s=JAG.TO&p=W&yr=3&mn=11&dy=0&id=p17637885583&a=653049310
Hi Matthew – What are your thoughts on Impact Silver chart? It looks to me like it could be going down to its final flush point.
I agree that it doesn’t look great but have to wonder if it didn’t just end its final flush. It fell 14% in less than a week and finally showed a tiny bit of strength today along with the rest of the sector. I bet IPT will get some relief tomorrow.
https://stockcharts.com/h-sc/ui?s=IPT.V&p=D&yr=1&mn=1&dy=0&id=p00720722549&a=661530517
The rising 30 week MA is still holding:
https://stockcharts.com/h-sc/ui?s=IPT.V&p=W&yr=3&mn=11&dy=0&id=p43737683007&a=691025615
IRAS METALS:
Thanks for the charts. Weinstein is always a good gut check. Let’s hope the 30 week holds.
https://tos.mx/NFQASxa
If this descending channel proves valid…Then the overshoot above should be matched by an excursion below the lower line of channel..that would approximate my first target of 1412 /GC
https://tos.mx/PQsaCfa
4hour chart of /GC..The failure is on wide price range and accelerated volume…IT is with conviction down…The consolidation of many weeks has proven to be significant distribution and the yearly top for gold should be cemented….Time analysis shows a possible trade able bottom in Jan. 2020…We will see…Currently this view is only in a Tom Demark 3 of the 9 bar count….GLTT
Looks like we will know very soon if 1450 will hold. I still think it will so I have added to several tiny cap miners today.
I kinda figured 1450 will hold but if it doesnt Dec will be another opportunity to buy.
Doc could be right tho, 1400 could collapse too.
Dont see too many people moving to goldshares with the market moving up…we will see.
I think way too many people, both bears and bulls, place way too much significance on the on the tariff talks. Gold’s real drivers, Fed policy and excessive debt, aren’t going anywhere negative for the metal anytime soon.
I bought a few today myself, couldnt resist. Should 1450 hold it’ll be up and away.
If a lower price happens in dec I’ll buy then too, actually I would probly buy at every $50 lower all the way to zero now.
The biggest scary for me is if the banks freeze so will the markets, phyzz could be the wisest approach right now, Deutsche Bank could be an issue.
Blessed be those that live in interesting times. 😉
I think you’d be okay holding your miners through such a market freeze since that environment would be extremely good for the metals that they mine.
But I think the Fed would anything to avoid that scenario.
GDX on daily 8/1/19 bar is a massive reversal bar with huge volume..It is the volume characteristic that matters….It would take the lord jesus appearance on earth to relax through that…lol…first time, anyhow
Yes, it is ugly but it is nice to see that the risky silver juniors are holding up much better than the safe stuff found GDX. The metals are testing their lows while SILJ is 8%+ above its low. That’s positive but of course such a divergence could disappear quickly if the metals break much lower.
https://stockcharts.com/h-sc/ui?s=SILJ&p=D&yr=1&mn=0&dy=0&id=p22026461136
Even the HUI is 2.5% above its low. Weinsteint’s 30 week MA support is less than 5% below if “R1” gives way…
https://stockcharts.com/h-sc/ui?s=%24HUI&p=W&yr=3&mn=11&dy=0&id=p79385282389
GDX…looking at daily structure it is very possible that an even wider consolidation may form with 26 price area as a buy zone and maybe 28 area the sell repellent zone…maybe anyways
/GC…..We now have ‘ICE’ Wykoff term, at the 1485 price level due to intra day congestion…It IS very plausable for an ‘instant rally’, Wykoff term, to unleash back to test that once support that is now resistance…Short away if on light volume!…i.e. more than 10% less volume than down legs…
Based on the action in the juniors, an instant rally seems very likely to me, too.
/GC no juice or momentum on the 10 minute and less time frames…..It ‘may’ fortel weakness overnight in the gold market…on the 30 minute chart we have a tom demark 8 count completed and if anothe 9 count emerges is is called a tom demark sequential and these define weakness in an issue…not certain of this happening at all…just a probability/danger to be aware of….
For educational purposes:
https://www.bullionstar.com/blogs/ronan-manly/the-power-of-gold-in-times-of-crisis/