Best of the Week
Most Popular
1.Spain Ignores Scotland Lesson as Catalan Independence Referendum Could Spark Civil War - Nadeem_Walayat
2.Used Car Buying From UK Dealer Top Tips, CarMotion.co.uk Real Customer Experience - N_Walayat
3.Spanish New Civil War Begins as Madrid Regime Storm Troopers Quell Catalan Independence Rebellion - Nadeem_Walayat
4.Virgin Media Broadband Down, Catastrophic UK Wide Failure! - Nadeem_Walayat
5.Are the US Markets setting up for an Early October Surprise? - Chris_Vermeulen
6.The Pension Storm Is Coming To Europe—It May Be The End Of Europe As We Know It -John_Mauldin
7.Stock Market Crash 2018; Will it Prove to be Another Buying Opportunity - Sol_Palha
8.The Profoundly Personal Impact Of The National Debt On Our Retirements - Dan_Amerman
9.Stock Market as Good as it Gets; Like 2000 With a Twist -Gary_Tanashian
10.1987 Stock Market Crash 30th Anniversary Greatest Investing Lesson Learned - Nadeem_Walayat
Last 7 days
Bitcoin Hits $6,000, $100 Billion Market Cap As Helicopter Ben and Jamie Demon Warn The End Is Near! - 22nd Oct 17
Time for Caution in Gold Miners - 22nd Oct 17
“Great Rotation” Ahead; Will it Be Inflationary or Deflationary? - 21st Oct 17
The Trigger for Volatility, Rates and the Next Crisis - 21st Oct 17
Perks to Consider an Agent for Auto Insurance - 21st Oct 17
Emerging Megatrends Hurting Consumers - 21st Oct 17
A Catalyst of the Stock Market Bubble Bust - 21st Oct 17
Silver Stocks Comatose - 21st Oct 17
Stock Investors Ignore What May Be The Biggest Policy Error In History - 20th Oct 17
Gold Up 74% Since Last Stock Market Peak 10 Years Ago - 20th Oct 17
Labour Sheffield City Council Employs Army of Spy's to Track Down Tree Campaigners / Felling's Watchers - 20th Oct 17
Stock Market Calm Before The Storm - 20th Oct 17
GOLD Price Creates Bullish Higher Low - 20th Oct 17
Here’s the US’s Biggest Vulnerability in NAFTA Negotiations - 20th Oct 17
The Greatest Investing Lesson Learned from the 1987 Stock Market Crash - 20th Oct 17
Stock Market Time to Go All-in. Short, That Is - 19th Oct 17
How Gold Bullion Protects From Conflict And War - 19th Oct 17
Stock Market Super Cycle Wave C May Have Started - 19th Oct 17
Negative Expectations, Will the Stock Market Correct? - 19th Oct 17
Knowing the Factors Affect your Car Insurance Premium - 19th Oct 17
Getting Your Feet Wet In Crypto Currencies - 19th Oct 17
10 Years Ago Today a Stocks Bear Market Started - 19th Oct 17
1987 Stock Market Crash 30th Anniversary Greatest Investing Lesson Learned - 19th Oct 17
Virgin Media Broadband Down, Catastrophic UK Wide Failure! - 19th Oct 17
The Passive Investing Bubble May Trigger A Massive Exodus from Stocks - 18th Oct 17
Gold Is In A Dangerous Spot - 18th Oct 17
History Says Global Debt Levels Will Lead to Another Crisis - 18th Oct 17
Deflation Basics Series: The Quantity Theory of Money - 18th Oct 17
Attractive European Countries for Foreign Investors - 18th Oct 17
Financial Transcription Services – What investors should know about them - 18th Oct 17
Brexit UK Vulnerable As Gold Bar Exports Distort UK Trade Figures - 18th Oct 17
Surge in UK Race Hate Crimes, Micro-Racism, Sheffield, Millhouses Park, Black on Asian - 18th Oct 17
Comfortably Numb: Surviving the Assault on Silver - 17th Oct 17
Are Amey Street Tree Felling's Devaluing Sheffield House Prices? - 17th Oct 17
12 Real-Life Techniques That Will Make You a Better Trader Now - 17th Oct 17
Warren Buffett Predicting Dow One Million - Being Bold Or Overly Cautious? - 17th Oct 17
Globalization is Poverty - 17th Oct 17
Boomers Are Not Saving Enough for Retirement, Neither Is the Government - 16th Oct 17
Stock Market Trading Dow Theory - 16th Oct 17
Stocks Slightly Higher as They Set New Record Highs - 16th Oct 17
Why is Big Data is so Important for Casino Player Acquisition and Retention - 16th Oct 17
How Investors Can Play The Bitcoin Boom - 16th Oct 17
Who Will Be the Next Fed Chief - And Why It Matters  - 16th Oct 17
Stock Market Only Minor Top Ahead - 16th Oct 17
Precious Metals Sector is on Major Buy Signal - 16th Oct 17
Really Bad Ideas - The Fed Should Have And Defend An Inflation Target - 16th Oct 17
The Bullish Chartology for Gold - 15th Oct 17
Wikileaks Mocking US Government Over Bitcoin Shows Why There Is No Stopping Bitcoin - 15th Oct 17
How to Wipe Out Puerto Rico's Debt Without Hurting Bondholders - 15th Oct 17
Gold And Silver – Think Prices Are Manipulated? Look In The Mirror! - 15th Oct 17

Market Oracle FREE Newsletter

3 Videos + 8 Charts = Opportunities You Need to See - Free

Gold and Silver Precious Metals Sector Pitchfork Analysis

Commodities / Gold and Silver Stocks 2015 Feb 08, 2015 - 05:52 PM GMT

By: Submissions

Commodities

Bryan Post writes: Gold and Silver had become overbought in recent weeks along with many of the mining stocks. On Friday the sector took a turn lower with Gold and Silver both dropping through major support levels.

Our trading plan doesn’t allow for shorting the precious metals sector so at this point we are waiting for the pullback to complete before taking new positions.

If you are accumulating the sector on weakness these symbols are displaying relative strength: NEM, SLW, CDE, HL and PAAS.


ETFs & Indexes

GLD – SPDR Gold Trust – daily chart

GLD dropped through support at both the 200 and 50 day exponential moving averages (EMA) as well as the horizontal support / resistance level – there is potential support at the lower median line of the blue Andrews pitchfork and the minor horizontal support / resistance level

~

SLV – iShares Silver Trust – daily chart

SLV dropped through support at the 50 day EMA to test support at the lower median line of the blue Andrews pitchfork and the horizontal support / resistance level

~

GDX – Market Vectors Gold Miners ETF – daily chart

GDX closed above the 200 day EMA on Thursday but gapped lower on Friday penetrating support on the moving average as well as the horizontal support / resistance level – the downward move also penetrated the upper median line of the blue modified-Schiff pitchfork with price closing below that level – potential support comes in at the minor horizontal support / resistance level and the 50 day EMA below that

~

GDXJ – Market Vectors Jr. Gold Miners ETF – daily chart

GDXJ dropped below the 50 day EMA and the lower median line of the blue Andrews pitchfork – the next support level occurs at the minor horizontal support / resistance line – the MACD histogram was rising towards zero until Friday

~

CEF – Central Fund of Canada – daily chart

CEF gapped lower Friday penetrating the 200 day EMA and the horizontal support / resistance level – price found support on the upper median line of the blue modified-Schiff pitchfork and the 50 day EMA – Friday’s bar is an interesting doji showing that buyers and sellers did battle and the buyers came out slightly ahead – price closed Friday above a minor support / resistance level

~

HUI – ARCA Gold Bugs Index – daily chart

HUI dropped through support along the upper median line of the red Andrews pitchfork to potential support at the median line of the blue Andrews fork
Gold Miners

GG – Goldcorp – daily chart

GG gapped lower on Friday and penetrated the 200 day EMA – price closed above a level where support has been found recently (solid line) – notice that the support / resistance line is actually a little lower (dashed line) – lines that get tested from both sides, like the dashed line, tend to be revisited in the future – a test of this dashed line would also allow price to test support on the upper median line of the red Andrews fork and the median line of the blue Andrews fork

~

KGC – Kinross Gold – daily chart

KGC is pulling back to test support at the 50 day EMA, the lower median line of the blue modified-Schiff pitchfork and the horizontal support level

~

NEM – Newmont Mining – daily chart

NEM gapped lower Friday to test support on the horizontal support / resistance level – the doji candle shows that buyers and sellers fought each other and neither side could gain an advantage
Silver Miners

SLW – Silver Wheaton – daily chart

SLW has been one of the stronger mining stocks for months – there are five rules or guidelines for us to follow when we are working with Andrews pitchforks – one of them says that price is always targeting the next median line – this means that back in November when price dropped through the red fork’s median line and plunged lower, the target for the move was the lower median line around $14.60 – the fact that price found support and turned back higher without testing the lower median line is a sign of strength – from that low point SLW has been making a series of higher lows and higher highs which defines an uptrend

another sign of strength in SLW is that all of the recent action has occurred above the 200 day EMA - price found support at the EMA on Friday - the long wick above the body of Friday’s candle tells us that sellers were in charge

~

CDE – Coeur Mining – daily chart

CDE is a relative strength leader with price remaining above the 200 day EMA – notice also that the MACD histogram is above zero in contrast to most of the other miners – Friday’s candle is a doji with the body right at the median line of the blue Andrews pitchfork

~

HL – Hecla Mining – daily chart

HL is relatively strong - it is the only chart where the 50 day EMA has crossed above the 200 day average – like SLW all of the recent action has occurred above the 200 day EMA – price has pulled back to the lower median line of the blue Andrews pitchfork and the horizontal support / resistance level

~

PAAS – Pan American Silver – daily chart

PAAS gapped lower through the 200 day EMA on Friday - buyers took price higher after the open but sellers came in and pushed price back down – Pan American, like some of the other silver stocks, is showing relative strength – the MACD histogram remains above zero and we haven’t gotten a MACD sell signal yet

~

SSRI – Silver Standard Resources – daily chart

SSRI dropped through both the 50 day EMA and the horizontal support / resistance level Friday – earlier in the week price fell through support along the lower median line of the blue Andrews pitchfork

~

The precious metals and the mining stocks remain in a long-term downtrend. We may be seeing the beginning of a new bull phase but caution is warranted. The sector became overbought in recent weeks and we are seeing a pullback. Price will show us where it wants to go next as the current decline plays out and finds support. If you are accumulating on weakness stick with the relative strength leaders.

Bryan

Editor-in-Chief, Pitchfork Playground

“When you recall that one of the first moves by Lenin, Mussolini, and Hitler was to outlaw individual ownership in gold, you begin to sense that there may be some connection between money, redeemable in gold, and the rare prize known as human liberty.” ~ Congressman Howard Buffett (Warren Buffet’s father)

© 2015 Copyright Brian Post - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife