Wednesday, December 10, 2014
Goldbugs: things to watch in the charts
Things I'm watching;
1. GLD is acting weak, but SLV is disconfirming that weakness with a good move upwards. GLD:UDN also isn't weak.
2. GLD's previous high was yesterday at $118.90, but GDX's previous high in this trend was $20.42 on the close Nov 25th. So that means GDX has catching up to do.
3. GDX is peeking above its own SMA(50), and is outpacing the advances in GLD now. That's good if it keeps going up, but a turnaround might make for a big whipsaw in GDX. The people (like me) counting on making a big profit in miners, if they have any money left, also have learned by now to be the first to the exits on weakness.
3. Watch the crappy stocks to see if they can break their nosedive. For example, First Majestic is actually threatening to break above its Bollinger for the first time in ever. I don't know if it was diving because of heavy insto selling or because of active shorting, but the nosedivers are reaching points where they usually turn around and collapse.
4. Meanwhile B2Gold is about to break above its own SMA(50): that would be a strong signal, considering the SMA(50) is right below that point where every stockholder of the last 4 years is underwater. I still think its chart says B2 has limited upside, but then again Otjikoto.