Jordan Roy-Byrne - Technical Commentary on the Metals – Wed 8 Jan, 2020

A close look at the GDX and GDXJ charts

Jordan Roy-Byrne wraps up today’s comments with a close look at the GDX and GDXJ charts. The set up for the precious metals stocks remains strong however there could be some more downside over the next month or two. The recent action, even before the tension between the US and Iran, were foretelling that the overall sector needed a little pullback. Jordan shares the levels he is watching for this pullback.

Click here to visit Jordan’s site and follow along with how he is reading the charts.

View related posts on: , , ,

Comments:
  1. On January 8, 2020 at 2:08 pm,
    Matthew says:

    Gold remains overbought despite today’s pullback and there is no damage to the weekly chart so far…
    https://stockcharts.com/h-sc/ui?s=%24GOLD&p=W&yr=5&mn=0&dy=0&id=p46813058605&a=711120664

  2. On January 8, 2020 at 2:17 pm,
    Fritz Bender says:

    Hey guys I am looking for opinions and I promise not to ever gripe about my final decision. If you were able to buy one of these which would you choose? Monarques Gold, Puma Exploration, Marathon(which is down decent bit tonight). Thank you all, we have a great group in here and have been helpful to me.

    • On January 8, 2020 at 3:59 pm,
      Matthew says:

      I like them in the order that you listed them but would not bother with Marathon. Puma is worthwhile but Monarch looks like a better bet to move up with the sector when the metals are performing. They are very different but if I were buying both, I would put 7 to 10 times as much money into MRQ. That’s just me. I do not own them and that’s not advice.

      • On January 8, 2020 at 6:34 pm,
        Fritz Bender says:

        Thanks again Monarque did sound interesting but could not figure what is exactly happening with their different plots. Somewhat confusing for me.

        • On January 8, 2020 at 10:07 pm,
          Matthew says:

          I finally took a look a Japan Gold and it looks pretty good too. It is currently trading at the price paid by private placement participants in August which looks like a good deal today.

        • On January 8, 2020 at 10:29 pm,
          Excelsior says:

          I owned Monarques back in 2017 until shortly after they acquired the 2 mills during the transaction with Richmont (when RIC was being acquired by Alamos AGI).

          They did some production but decided to put both mines on care and maintenance and focused more on exploration and expanding their resources, to extend mine life and improve the economics. They look very prospective now that their shares have sold down over the last 2 years, and I was debating getting a position back in them, but won’t until I divest some of my current gold developer holdings. My ideal scenario is to see one of my other gold developers like Pure Gold, Sabina, Treasury,Orezone, Falco, or West Kirkland get acquired, or for some of the other Developers make it into gold production on their own like Minera Alamos, Mako Mining, Bonterra, or Scorpio, and go on their “golden runway” higher into first pour.

          • On January 8, 2020 at 10:31 pm,
            Excelsior says:

            In one of those liquidity events (1) takeover or (2) golden runway into production then I’d consider trimming or selling, to then put those profits into Monarques.

  3. On January 8, 2020 at 2:19 pm,
    Fritz Bender says:

    Oh yeah you can throw Japan Gold into that group.

    • On January 8, 2020 at 3:20 pm,
      bonzo barzini says:

      Fritz, I own about 40 gold stocks but have never heard of those. Good luck.

      • On January 8, 2020 at 3:43 pm,
        Silverdollar says:

        Monarque was something recommended by Chris Temple a little over a year ago. Down about 30% since then. Others I haven’t heard of either. To Fritz: If these are your only choice, I’d take that money you have, fold it over and stick it back into your pocket. You’re assured of a double at minimum!

  4. On January 8, 2020 at 3:51 pm,
    cfs says:

    Ira’s end of day TA
    https://youtu.be/jIRWrU9TXa0?t=13

  5. On January 8, 2020 at 7:41 pm,
    Buzz says:

    Uh, anybody get a load of LODE?

  6. On January 9, 2020 at 6:18 am,
    OOTB Jerry says:

    Phyz……Gold not doing bad……..From $1048 to $1550…

  7. On January 9, 2020 at 6:18 am,
    cfs says:
    • On January 9, 2020 at 7:48 am,
      Wolfster says:

      When Ivan talks Auryn it always sounds good. Almost always too good to be true and the stock price says more I believe.

  8. On January 9, 2020 at 6:24 am,
    cfs says:

    Skeena drills 5.1 m of 16.64 g/t Au at Snip

    2020-01-09 08:35 ET – News Release

    Mr. Walt Coles Jr. reports

    SKEENA INTERSECTS 16.64 G/T AU OVER 5.10 M IN 200 FOOTWALL AT SNIP

  9. On January 9, 2020 at 6:31 am,
    Matthew says:

    Eric Sprott Announces Investment in Jaguar Mining Inc.
    https://www.newsfilecorp.com/release/51271

  10. On January 9, 2020 at 8:17 am,
    Matthew says:

    In the same way that gold tends to give back overnight gains to start the day where it left off the day before, it looks like the action this week has been all about taking markets back to where they were before the thinly traded days surrounding the holidays.
    XAU priced in DIA:
    https://stockcharts.com/h-sc/ui?s=%24XAU%3ADIA&p=W&yr=4&mn=5&dy=0&id=p56668154831&a=707626462

    • On January 9, 2020 at 8:20 am,
      Matthew says:

      So don’t be surprised if big money takes an interest on the long side of the miners very soon.

  11. On January 9, 2020 at 8:22 am,
    Wolfster says:

    Hey Ex did I miss something ??? You mentioned Kootenay during your list of deals golden valley has

    • On January 9, 2020 at 11:08 am,
      Excelsior says:

      Sorry, it was late and I was thinking of Sailfish Royalties NSR on Kootenay’s La Cigarra property. I own both GZZ and FISH and have been posting on both a lot recently.

      Here is the royalty that FISH has on KTN’s flagship:

      https://sailfishroyalty.com/index.php/projects/la-cigarra-royalty/

      • On January 9, 2020 at 11:49 am,
        Wolfster says:

        No worries….. been looking at the sailfish but it’s a little too illiquid right now for my liking. Might put some stinkball bids to see if I get some on the cheap after selling some of my other plays….for big profits of course

        • On January 9, 2020 at 12:27 pm,
          Excelsior says:

          Here is a slide from page 10 of the new January $GZZ #CorporatePresentation showing their asset mix and a minimum valuation should be $103.7 Million (for just their stake in RZZ and shares in SOI, VZZ, IZZ).

          However, that doesn’t even include any value for their Net Smelter #Royalties with (BTR) Bonterra, (SOI) Sirios, (OIII) O3 Mining, (ELD) Eldorado gold, (IZZ) or (VZZ) which are attributed $0 value in that scenario.

          There is a huge arbitrage trade here, as we’ve discussed in the past, because currently Golden Valley is only valued at $68.5 Million based on today’s stock price, so they need to add $34.5 Million just to get to the very conservative minimum valuation).

          Instead of selling off GZZ needs to increase in shareprice about 34% + whatever value all the NSRs make on top of that.

          http://cdn.ceo.ca/1f1f2ga-Golden%20Valley%20Mines%20Assets%20Valuation.JPG

        • On January 9, 2020 at 1:29 pm,
          Excelsior says:

          Yes, FISH is a bit illiquid because Wexford Capital has a big piece of the pie at 52.8% and management owns another 8.6% so 2/3rds of the shares are not trading and tightly held.

          The retail float is just a small percentage, so I see that as a positive not a negative.

  12. On January 9, 2020 at 8:22 am,
    cfs says:

    Cory, do you know anything about Galleon Gold?
    Galleon Gold issues 60 million shares to Sprott company

    2020-01-09 07:48 ET – News Release

    Mr. R. David Russell reports

    ERIC SPROTT BECOMES CONTROLLING SHAREHOLDER OF GALLEON GOLD

    Eric Sprott, through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, has exercised his right to convert a Galleon Gold Corp. debenture in the amount of $3-million. The debenture (see press release dated Sept. 5, 2019) is convertible into common shares at a price of five cents per share for a total of 60 million common shares.

    Galleon Gold shareholders voted to approve Mr. Sprott as a control person of the company at an annual and special meeting held on Dec. 11, 2019. A control person is defined by the TSX Venture Exchange as a person that holds a sufficient number of any securities of an issuer so as to affect materially the control of the company, or that holds greater than 20 per cent of the current shares outstanding.

  13. On January 9, 2020 at 8:27 am,
    cfs says:

    Galway drills 4.75 m of 20.9 g/t Au at Clarence

    2020-01-09 07:16 ET – News Release

    Mr. Robert Hinchcliffe reports

    GALWAY METALS INTERSECTS 20.9 G/T AU OVER 4.75M PLUS 2.7 G/T AU OVER 14.1M IN GAP BETWEEN RICHARD AND JUBILEE AT CLARENCE STREAM

    Galway Metals Inc. has released assay results from drilling at the Richard and Jubilee zones, and from the gap between the two at the company’s Clarence Stream project in southwestern New Brunswick, Canada. The latest drilling continues to fill in the gap between the Richard and Jubilee zones with high-grade intersects such that the gap is now 425 metres, down from one kilometres when the Richard zone discovery was first announced in January, 2019. Given results in this gap area to date, Galway is demonstrating that its interpretation that the Jubilee, Richard and the George Murphy zones, which cover 2.5 km of strike length, are part of the same system. None of these three zones are in the existing resource, which will be updated to incorporate them around midyear 2020.

  14. On January 9, 2020 at 8:36 am,
    cfs says:
    • On January 9, 2020 at 10:55 am,
      JMiller says:

      The Fed did not pump in more than $6 Trillion in the last 6 weeks as that article from Wall Street On Parade is trying to make it sound. That roughly $215 billion per day was not new money being added each day. That $215 billion was just the average daily amount of repos that were outstanding in the last 6 weeks.

      The correct amount that has been added is about $413 billion in the last four months. That is what has been added to the Fed’s balance sheet. Not $6 Trillion.

      https://wallstreetonparade.com/2020/01/feds-balance-sheet-explodes-by-413-billion-in-119-days/

  15. On January 9, 2020 at 8:37 am,
    cfs says:

    dang, my internet is out of breath….

    st > still

  16. On January 9, 2020 at 8:39 am,
    cfs says:

    Ira’s Morning TA:

    https://youtu.be/xOLse9p06nY?t=14

  17. On January 9, 2020 at 9:53 am,
    Matthew says:
    • On January 9, 2020 at 10:56 am,
      JMiller says:

      Thanks Matthew for your charts and input.

      • On January 9, 2020 at 12:04 pm,
        Matthew says:

        You’re welcome JMiller.

  18. On January 9, 2020 at 10:01 am,
    Matthew says: