Posts
The precious metals sector has enjoyed decent gains over the last two weeks. The two charts below learn that three out of the four major assets within the Precious Metals sector have broken out from their downtrends (only GDX lags).
However, from a technical perspective, that doesn’t necessarily signal more gains ahead, as another resistance is approaching. Gold, Silver and various PMs mining indices are now all pressing against their 200 day moving averages.
Bears will conclude that failure to break out above this important pivot point will most likely signal the end of yet another dead cat bounce. On the other hand, bulls are pointing to Gold Mining Exploration Index (NYSE: GLDX), the most speculative of all mining juniors, which has recently broken out above its 200 day moving average for the first time in a year. Could this be a leading indicator Gold bugs have been waiting for? Only time will tell.
Our advice to investors is to closely monitor the price action in coming days and weeks ahead.
Courtesy: Short Side Of Long
0 comments:
Post a Comment