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Constructive Signs for Gold Digging

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The cycle picture is hazy. The table at left (subscriber version) is my best guess. A short term low is due, but at a lower projection. The would-be 13-17 week cycle up phase has gone nowhere, despite a new projection that points higher. If it doesn’t get out of this range soon, it would suggest the possibility of a wicked down phase ahead. If the price holds above the May-August downtrend line as shown on this chart (subscriber version), that would be constructive

HUI gold stock index has been rangebound at the lows for the past month. It still needs to clear xxx (subscriber version) to complete an intermediate term bottom. If successful, it would indicate a new 6 month cycle up phase. The measuring implication would be around xxx (subscriber version).

In the cycle screens of the mining stocks, short term cycles got crushed but the two longer time frames held up ok over the past week. That suggests a pullback in a longer up phase. It tells us to stay the course for now with any longs that haven’t been stopped out, and keep an eye out for new entries.

In the chart picks screen, today’s screen yielded 20 buy signals. There were 4 sell signals. This is a nice balance from a bullish perspective. Last week there were 43 sell signals which was a red flag, but as I wrote then, “The intermediate trend structures still hold the prospect of further gains.” Ditto this week. On reviewing the charts of the stocks with buy signals, I found a few that I liked and will add to the list as buys as of today’s opening print. They are XX, XXX, and XXX. See charts below (subscriber version).

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Posted in 3 - Gold Trader
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