Gold stock sentiment indicator
Best place to start is with the XGD. It is worth reviewing at least once a week where the gold sector may be going.
The medium term chart has a trend that has held since 2015. There is a breakout though minor.
At the end of consolidation there is an occasional nudge in the trend but do not think it will happen this time.
I therefore do not expect it to fall as far as 5630 and the trend will hold. If it fails, a double bottom could form.
The shorter term chart is very promising as the down trend of the consolidation pattern was broken and therefore pretty weak.
I anticipate a pullback to around 5800 or within the cursor highlighted area. Currently 6050.
Provided the short term uptrend on the chart below holds, I have a future target of at least 7900 for the XGD.
There are a few reasons I think we are in for a pull back.
The first is the A/D for the XGD has rolled over and is now going lower.
There is room, given the recent positive price action by good stocks, for a correction to occur without chart damage.
50 gold stocks in an uptrend as of Thursday. May have lost a couple yesterday.
And the sentiment indicator is reversing.
This is how you want to see a stock break out of consolidation.
RMS, now with a target price of $2.02 according to my calculation tool. I’ll be putting in a bid.
The gold sector is either a coiled or broken spring. It is crunch time.
The PM sector is as tight as a fishes' asshole, particularly the supply of metals.
While massive amounts of stimulus suggests higher gold prices, that same money can be used to destroy the sector.
Keep in mind, the filthy rich want everything you have, including your soul.
They will do 'whatever it takes".
In the meantime, I am going to trade my charts and I did get rid of a few of the weaker stocks yesterday.
