Confirmation
The charts have been saying for weeks and months that gold and silver were always in a bull market since 2016. They have also been saying that the correction from last August was over and we are in the next leg higher. For those skeptics that needed confirmation, you have two such pieces today. First, as I postulated last week, that instead of being held back at the 200 day mvg. near 1855 or so, gold could very well break thru and keep on going. Surprising to some, but as I stated, not really surprising at all, since surprises in BULL markets are to the upside. The second confirmation is that the gold stock leader, Newmont Mining (NEM) just broke above it’s ten year double top to a new ATH.(see chart below) We will get a pullback as soon as later today or more likely tomorrow. It is probably the next to last chance to get aboard before the real fun begins.
Great calls CM ! In you’re estimation, in the mining majors space – 5% or 10% pullback after this run? Volume is still low and I believe we’re approaching a POR – like you say, after 1 possibly 2 pullbacks. GOLD (metal) at this level is hitting a lot of support/resistance at this point and some weak hands are going to get flushed IMO. I figure it will take a few days for the crypto crowd to get their PM cash together, then look out.
Thanks. Obviously each stock will react differently depending on how extended they are. Five to ten percent is a good guesstimate but the metals are only looking at short, sharp pullbacks, nothing dramatic.
Recognition day for SURE! I’m pretty heavy in and enjoying this one
Completely agree with the POR idea because folks who have been in many other sectors are realizing that the miners are severely undervalued in relative and absolute terms. Profit takers from other sectors and rotation out of crypto as losses mount are being attracted to the PM SECTOR!
Thanks Chartmaster. I was losing hope there for awhile. I’m glad I stayed in, but it was close. I almost sold it all out of sheer frustration. Today was very good, especially for my major holding, GoGold(GLGDF).
You are welcome Sir MJ. That GLGDF has been something since the March 2020 bottom. Chart says a lot more upside from here.