|
In this update...
- Sponsor News
- Premium: Charts & Analysis
Sponsor News...
Corvus Gold's latest @ Yellow Jacket (7g/t over 13m) & Sierra Blanca (0.53 g/t over 128m)
Corvus founder & CEO Jeff Pontius discusses it with us
Balmoral Resources Resumes Drilling at Martiniere
Balmoral will drill a minimum of 12,000 meters this summer.
First Majestic Silver & Argonaut Gold will report Q2 financial results on Tue, Aug 13
Premium: Charts & Analysis:
The recovery in the gold stocks remains well on track and well within historical norms, as this chart shows below. The current recovery is in black.
Recall that the week started off poorly, prompting concerns that the recovery and bottom were in danger. Tuesday afternoon we sent a brief update to premium subscribers. Here is the text of that update:
Attached is a weekly chart of GDX which we think could be setting up a double bottom. Recall that GDX bottomed at very strong Fibonacci support and made a huge weekly reversal on record weekly volume. That remains in place and there is no reason, outside of emotion to think the sector is going to make a new low. When I look at the weekly charts of most our stocks I see little reason to think they will make new lows. The sector is down 7 straight days including today's gap down and close at the low of the day. In 2008, the gold stocks made a double bottom with a slightly higher second bottom.
Also take a look at ZJG (Canada's GDXJ) which has been basing for 3.5 months. One could say, how do you know that isn't bearish consolidation? ZJG declined 75% from top to bottom over 31 months. Moreover, consider the plethora of evidence we've already put forth (historical declines, negative sentiment, huge weekly reversal) and there is little reason to think this isn't a bullish base developing. That being said, we've noted it could take a few weeks for the next advance to begin. Do note that we are barely more than one month into this recovery. The template calls for a big recovery in the first four months and seven months. There is quite a lot of time left for that to happen.
In closing, the combination of a heavily oversold short-term condition and very strong support should lead to a reversal before the end of the week. Let this bottom and basing process play out. It has more to go but it's well intact.
The miners closed the week in very strong fashion and now the charts look quite bullish (as opposed to Tuesday). Below we plot GDX (large golds), ZJG.to (junior to mid-tiers) and SIL (silver stocks).
As you can see, the sector has been bottoming and basing for more than three months. History (as far as the first chart) details that the next advance should begin over the next one to two weeks. The chart above shows that the sector is quite close. Once we get a weekly close above the red lines and the market is above rising 50-day moving average, then the recovery should accelerate. I'm looking for big gains over the next two months.
Consider a subscription now and find out what stocks we've added recently and which ones we want to add very soon. You'll receive all recent updates and major reports which includes:
-Top 5 Growth-Oriented Producers (30 pages)
-Report on 6 exploration & development companies (23 pages)
-TDG #318 Charts on our MP Holdings & Watch List (28 pages)
-TDG #320 Report on Model Portfolio & how to build a portfolio & categorize risk & potential
Wishing you good health and profits,
-Jordan
Disclaimer: Sponsor Companies are paid sponsor companies of TheDailyGold.com website and this free newsletter. Do not construe sponsorship with a recommendation. The author of this newsletter is not a registered investment advisor. This newsletter is intended for informational and educational purposes only and should not be considered personalized and individualized investment advice. Investment in the precious metals sector contains significant risks. You should consult with an investment advisor and due your own due diligence. This email may contain certain forward looking statements which are subject to risks, uncertainties and a multitude of factors that can cause results and outcomes to differ materially from those discussed herein.
|
|
