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Chart 1: GDXJ Chart w/ Breadth Indicators
Here is a chart of GDXJ with two breadth indicators from a basket of 50 stocks. We plot the percentage of those 50 stocks that closed above the 50-dma and 200-dma.
After the low on Wednesday the figures were 19% and 26%. As you can see from the data, juniors are oversold but not yet extremely oversold. That would require a move lower in the sector coupled with a move lower in breadth indicators. However, it is possible breadth can show a positive divergence. (Another indicator we can look at is new 52-week lows).
Late Saturday evening, we published TDG #559, a 28-page update which covers our near-term posture with potential downside and upside levels for gold stocks and Gold. The update includes buy targets on our favorites, Q&A on a few stocks, the one company we own and want to buy more of and another company with potential to make a key discovery in its next drill program.
Right now, Silver and the gold stocks are not too far from bottoms in price but the problem for the sector is Gold has more work to do. Its sentiment indicators (especially the CoT) need improvement. Gold tested the low $1300s last week before bouncing. We see it testing its 200-dma in the $1280s and perhaps going a bit lower. Whether that happens in a few weeks or a few months we don't know.
There are a handful of good values out there right now and these could potentially turn into excellent values over the weeks ahead. We trimmed a highly successful position and sold a loser so our cash position is relatively high. We are on the lookout for more big winners!
Subscribe to our service and find out which juniors are great values and have massive potential over the next 12-18 months. (And we answer subscriber questions).
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You nearly always read the trends and support and resistance extremely well. Please keep us posted if or when the outlook seems to change. which you always do of course. TDG is the most valuable resource for understanding what is possible to understand about the PMs.
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Disclaimer: 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 do your own due diligence before making any investment decisions. This email may contain certain forward looking statements which are subject to risks, uncertainties and a multitude of factors that
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