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Chart 1: Gold w/ CoT & Oversold Indicators
Below we plot Gold along with its net spec position (CoT) as a percentage of open interest. That is followed by two oversold indicators based on 10 weeks and 20 weeks.
The net spec position is 10% and there are still some readings in 2013 and 2015 that were lower. Based on the oscillators, Gold is not as oversold as it was at extreme points during 2013 to 2016.
TheDailyGold Premium #581
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The 27-page update was published and emailed to subscribers late Saturday night.
In the update we noted that GDX & HUI rebounded from key support at the end of the week. On Thursday, the HUI closed at 163, its December 2016 low while GDX closed right around $21.00. These are very important support levels that should kick-start a rebound. But how big? What are upside targets?
Gold meanwhile faces very strong resistance above $1270. A 4% rally from Friday's close puts it at $1271. Its very difficult to see Gold going much higher than that. If the miners don't outperform Gold then we are looking at a minimal rebound in price, though time is also a component.
Interestingly, regardless of metals prices, the industry and market are paying up for companies that make discoveries or add value to high margin potential deposits. That is not just lip service, its actually happening. We've been holding a handful of stocks that are only trading based on their own news and potential to add value or not.
One of our biggest winners remains in an uptrend after an initial discovery. It is going to be drilling again shortly. One small junior we own is seeing new buzz and could be on the cusp of a Copper-Gold discovery at depth. If thats the case the stock will fly as its tiny and very tightly held. We own another company that could be the next Kirkland Lake (though a poor man's version).
Consider a subscription as we can help you navigate what lies ahead for the sector and help you position in the stocks that can make big gains when the Federal Reserve is done hiking rates. Subscribe and give us your list of stocks and we will give our opinion, buy, sell or hold.
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I follow your work and it's very impressive -- am considering subscribing even though I focus on futures and macro more than individual equities. You are a refreshing voice in a space full of doom-and-gloomers, perma-bulls, and precious metals salesmen.
My 6 month renewal is due once again. Your work continues to be outstanding and I want to make sure there are no disruptions in the service.
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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