Dave Erfle – Constructive Technical Action Here At Month-End In The Precious Metals Sector
Dave Erfle, Founder and Editor of The Junior Miner Junky, joins us to review the constructive technical action here at month-end on the charts for gold, silver, GDX and GDXJ. With gold up decisively above $2000 in a short-covering rally, and big gaps higher in silver and the mining stock ETFs, after recently outperforming the yellow metal, and bullish candlestick patterns on the weekly charts; there are a lot of positive factors stacking up for the precious metals sector.
Another positive trend we review is that industry leaders like Newmont and Barrick have been outperforming the PM mining indexes, and may indicate more generalist investors getting positioned in the gold miners once again. We discuss that things are getting a bit overbought on the daily charts, and volumes are still not robust, so we could still see a pullback in the near-term. However, Dave feels that most of tax loss selling has already transpired earlier in the year, and that the risk is definitely more to the upside than any sustained move to the downside in the medium-term.