Jordan Roy-Byrne – Enduring The Short-Term Corrective Pain, For The Longer Term Precious Metals Gain

Jordan Roy-Byrne, Founder and Editor of The Daily Gold, joins us with his technical outlook on the recent corrective action in the precious metals sector, while still in the context of a longer-term secular bull market.  On the daily and weekly charts, after a solid move higher in Q1, both gold and GDX failed to breakout above key resistance areas and got overbought, showing they needed to bullishly consolidate these recent moves before the next leg higher.


We look forward into how the precious metals markets will respond to future Fed policy, where the central bank eventually switches from hiking rates to reversing course and then cutting rates.  Next we transition over into how longer-term both gold and the precious metals miners will resume their uptrends after a few months of consolidation, completing the handles on the 2 bullish cup & handle patterns.   The discussion wraps up with Jordan making the point that eventually the general equities will capitulate and start correcting, and that this is impetus behind the precious metals sector diverging and making much higher highs.



Click here to visit Jordan’s site – The Daily Gold.

    Apr 06, 2022 06:33 PM

    The Fed Just Disengaged Its Volatility Suppression Machine

    Jesse Felder – The Felder Report – (04/06/2022)

    Apr 06, 2022 06:32 PM

    Should have sold scuzzy couple of weeks ago when it was near the upper bolly. Now here sits scuzzy at the lower bolly and it’s getting me down.

      Apr 06, 2022 06:18 PM

      Personally I trimmed back just a wee bit of SCZ scuzzy back on March 21st, but am mostly holding and have a position still well in the green, so no complaints here. Santacruz has done way the heck better than most other silver or gold juniors so far this year.

    Apr 06, 2022 06:38 PM

    Price Quality:
    NatGas Top. Quick Correction?
    Deflation Card?

    Apr 06, 2022 06:38 PM

    Could have sold the whole scuzaree at .53, now here it sits at .43
    Gotta know when to hold em,
    Know when to fold em

    Apr 06, 2022 06:14 PM

    Slowly purchasing consistently now—-what’s good is some stocks are correcting while others are topping out. I purchase those that have corrected while waiting for others to correct—that allows one to roll back and forth.

      Apr 06, 2022 06:23 PM

      Good strategy Doc. Any specific stocks that you feel have corrected far enough down to be nibble-worthy?

      The only 2 new positions I’ve added in the last week have been buying back into Integra and GR Silver, as they’ve been pretty well crushed at this point. 2 weeks ago I did buy back my Fury, Elevation Mining, and Wallbridge positions as well as they’d all been dragged behind the woodshed and beaten as well.

      Anything else catching your eye that has priced in much of the downside at this point?

        Apr 06, 2022 06:33 PM

        Ex, I’ve been waiting for Fury to pull back which it did today so I purchased some—it might not be over so I’ll purchase more as it moves lower. The stock chart I absolutely love technically is MUX. Every month that it touches the lower BB I purchase a nice number of shares—I believe we have a few more months where MUX will do this. I also like the way FSX is bottoming on the monthly. I’ve started to purchase. I bought a little ITR.V today to just put it on my watch list. I’m waiting here soon to purchase some EXN.

          Apr 06, 2022 06:57 PM

          Ex, thanks for alerting me to elevation mining—do you like it and why? I bought a boatload of Mirasol awhile back—look at that chart—it’s really starting to move.

          Apr 06, 2022 06:10 PM

          Good pickups Doc on FURY, MUX, ITR, and FSX. Yes, I’ve got positions in the first 3 of those, and looking to get back in FSX, but as mentioned when we chatted elected to go with Bryan’s other company ZAC instead.

          As for ELVT, I just went on a long rant about it recently responding back to Terry calling it a “headscratcher” so I’ll just repost that here.

          We are working on getting them on the show, but apparently they are rebranding their message to the market and will be coming out to update investors in the not so distant future. Personally, as prior shareholder of Northern Vertex, I was a bit puzzled at the acquisition of Eclipse for Hercules when they didn’t even have the funds to do much exploring on it last year, so what was the rush in acquiring it then? Why didn’t they just put their head down and charge on the Moss Mine, as apparently they’ve got a good land package with plenty of exploration.

          It didn’t really seem like either prior companies group of shareholders really liked the merger, but it is what it is at this point, and is water under the bridge, so any remaining shareholders are in for the combined assets. Now the team running Elevation Gold is largely made up of the prior Eclipse team with some remaining Northern Vertex members, and the primary initiative is to explore and expand around the Moss mine, and rightly so, to extend the mine life and look for ways to get the revenue higher, to avoid needing more capital raises. At these higher metals prices, gold producers should be able to turn a profit. That should be primary, but I’m still curious to see if they are going to finally do any work to start exploring or developing Hercules, and am looking forward to seeing if ELVT can get things turned around with both operations and improved with investors sentiment towards their 2 projects.

          Personally, I recently added just a bit more last week, as the market cap of this company is really quite silly as a gold producer, being valued below many grassroots explorers, and apparently getting zero value for Eclipse’s prior flagship project Hercules. I’m hoping it is not just throwing good money after bad at this point, but I’m willing to take a punt down at these levels that the management team and board can relaunch this company to the marketplace and gradually start building value once again.

            Apr 06, 2022 06:09 PM

            ELVT valued more like a Russian stock, very low.

            Apr 06, 2022 06:17 PM

            I’d submit ELVT is valued worse than Russian stocks. Ha! Yes, a silly valuation for a gold producer, and while it has not been well-received by the market, I added a position to play it for a turnaround story.

    Apr 06, 2022 06:59 PM

    Gold is ~1925 spot. If it continues to hold anything is possible. (Fast?)
    If it nears 1900 it will likely fall to JRB’s 1880, and maybe much lower.

      Apr 06, 2022 06:12 PM

      Good point BDC, Gold is back down around that $1920-$1921 level of support… again…. but it’s held a number of times there in previous weeks both as an intraday support, and even at closing levels on the daily and weekly over the last month or two. As Jordan mentioned though, a breach of this level down to $1900 or even $1880 wouldn’t be surprising over the next few weeks, but I’m not expecting to see the yellow metal fall out of bed or anything.

      Gold just dipped down to $1922.10 briefly and then has bounced back up to $1923.80 at the time of writing this.

        Apr 06, 2022 06:38 PM

        CPM Group’s 2022 Gold Market Update

        Apr 6, 2022

        “The 2022 Gold Market Update gives a brief overview of what we saw in the gold market last year, and provides CPM Group’s Gold Outlook for 2022 and Beyond.”

      Apr 06, 2022 06:21 PM

      Note the wicks around 1900 :

    Apr 06, 2022 06:44 PM

    Oil closed below its 50 day MA for the first time in over 3 months and also took out important fork support…

    Apr 06, 2022 06:15 PM
    Apr 07, 2022 07:25 AM

    Sorry, but I bought Westhaven today. It immediately entered my rotation. This is about the 4th time I bought into it. If they can extend this recent find, maybe this time it will move. It does increase the possibility of being attractive for purchase. We will see …

    Apr 07, 2022 07:39 PM

    Athabasca Oil, ATH. Average shares sold per day around 5m, today, 31m on what looks like mediocre price day but it could be new support area IMHO. Trading at a p/e of 2.6x with 500m shares out.