Gold Miners Attempting Multi-Year Breakout
I know it might not seem like it but GDX is close to breaking out of a triangle/pennant pattern that has been developing since 2015. The summary below is provided by our buddy Chris Kimble over at Kimble Charting Solutions.
…Here’s the post…
CLICK ON CHART TO ENLARGE
The Junior Miners/Senior Miners Ratio (GDXJ/GDX) can often signal when key turning points are about to take place for Gold & Silver Miners.
Above looks at this ratio, which highlights that a multi-year narrowing pennant pattern has been forming (higher lows and lower highs).
Despite Gold, Silver, GDX, and GDXJ heading much lower over the past several months, this important ratio has actually been heading higher and it is facing a key breakout test at (1).
Should this ratio breakout, it would send a short-term bullish message to the out of favor mining sector.
Below looks at the spread between the S&P 500 and Gold/Silver Index (XAU) over the past 7-years
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If the GDXJ/GDX ratio breaks out, the odds increase that the large spread between the S&P and the XAU index will narrow!
If you are interested in short & long-term investment solutions for Gold, Silver, Miners, and Copper, being a Metals Member could become a big advantage for you!
The current low that’s in the works for silver is right on (Fibonacci) time:
GDXJ:GDX
http://schrts.co/NZpLLc
Glad I doubled my Jag stake when it plunged last month…
http://schrts.co/x6jSeH
Nice!
Yup, I’ve been waiting a long time for Jag to come down to the price level I bought at about 10 days ago. Nice pop but I won’t be chasing it here.
Yes, I think it was in April when you last mentioned that it would go to 25 to 30 cents. I didn’t see .18 coming but it made sense given the news and backdrop for the sector.
Agreed Matthew. Had a nice trade of the plunge in JAG last year, and was thrilled for the opportunity to buy another plunge this year in Jaguar.
Fundamentally I’m very impressed with their resource expansion through solid exploration work, and mine optimization plan playing out through the balance of this year and into next year. They are getting set up to be the solid mid-tier producer they were once again, like they were in the last metals cycle.
Fun times!
It’s a great out-of-the-money call option that will surprise many if gold moves up modestly.
I won’t be trimming my position anytime soon.
http://schrts.co/9abB6N
Yeah, at this point, it looks like a good longer term value proposition for JAG for the long game. I’m not there in most stocks, but with Jaguar, I feel my position is solid for the remainder of this bull cycle. (barring some crazy change in the news or company).
They still have the 3rd mining complex with their 4th mine to optimize after they get the 2nd complex w/ the 3rd mine optimized.
Longer term they have quite a pipeline of production projects to feed the rest of this cycle. My only hope is that a larger company doesn’t buy them out and they have time to get fully re-rated during this cycle on par with other gold producers doing close to 80K-100k ounces per year, and that they get their operations running they way they project they can.
One of the only Gold producers in the same production range getting valued lower is (ALO) Alio gold (the old Timmins merged with Rye Patch).
JIM ROGERS – 16 Sep 2018 – Invest In Russia, China, Japan, Gold under 1K. Avoid US especially Tech
Buy gold under $1000.00
We might have to eat our words………If, Tweedy’s $968 gold comes into play……..:)
Nah….. Birdman was calling for that $968 since the middle 2015, and was not expecting Gold to add $200-$300 bucks in 2016-2018, so he was wrongo in the congo. Same with Jim Rogers for years….
They’ve been calling for Sub $1000 gold for a few years, but that is not what happened.
Even if Gold does drop down under $1000 now, neither could claim they called it within the realm of common sense, so they are the ones that should have been eating their words the last few years. Sorry, neither was offering tradable advice that amounted to a hill of beans, and Jim Rogers has been pumping Russia & Japan and China for years, and they all tanked.
Jim has nice bow ties, but he’s a terrible market timer (as he freely admits) and hasn’t made any good calls in years, as what he was waiting to buy like Gold and Tech went up, and what he was buying in Russia/Japan/China has been getting their rumps whooped.
If I want bow ties I’ll just pull up a picture of Orville Redenbacher:
https://www.bing.com/images/search?q=orville+redenbacher&qpvt=orville+redenbacher&FORM=IARRSM
Pop corn fan huh?
Yes Big Al. Butter, Cheese, or Carmel corn….. It all works for me. 😉
I think it might have been as early as 2013 that bird started talking 968.
+2013
long CLSN
Still own several high quality gold and silver stocks at a loss . Glad i started buying food dna beverage stocks last year. Exception i bought Microsoft at 100 and now its near 114. Buying maily dividend paying stocks . Thanksfor article scott