Erik Wetterling – After This Selloff In Gold Stocks Here Are A Couple The Erik Likes
Erik Wetterling, Founder and Editor of The Hedgeless Horseman website joins us to share a couple companies he thinks are higher quality but have sold off hard with the rest of the sector. There is no denying that precious metals stocks continue to selloff so when looking at individual stocks it’s important to understand what will drive the stock in the future.
The stocks mentioned are Cassiar Gold (GLDC) and Snowline Gold (SGD).
Interesting Matthew,
Some reverse H&S vibes to boot no?
Yes sir. The picture isn’t nearly as bad as most assume and, longer term, it’s not bad at all.
Even when priced in gold, the action in the miners has been consistent with a bull market shake out rather than the start of a bearish trend.
GDM:Gold pitchfork perfection:
https://stockcharts.com/h-sc/ui?s=%24GDM%3A%24GOLD&p=D&yr=2&mn=0&dy=0&id=p99770207753&a=982099007
The dollar is now at very important resistance but is critically overbought so any breakout here will probably prove to be a bull trap.
https://stockcharts.com/h-sc/ui?s=%24USD&p=W&yr=6&mn=3&dy=0&id=t3188746238c&a=653766793&r=1651198151625&cmd=print
Here’s a better link for stockcharts subscribers:
https://stockcharts.com/h-sc/ui?s=%24USD&p=W&yr=6&mn=3&dy=0&id=p73916514324&a=653766793
81 to 1……. GSR………. silver needs to catch a break…….soon…..
The Canadian dollar just dealt with the kind of gap that most people don’t recognize as a gap. You can see that March 9th opened well above the previous day’s close…
https://stockcharts.com/h-sc/ui?s=%24CDW&p=D&yr=1&mn=5&dy=0&id=p52578882599&a=1117321715
Time for a bounce or several.
I am seeing a lot of engulfing candles on the daily charts I am reviewing. See how the week ends.
It would be great to see silver close above $24 for the weekly/monthly close.
It would definitely be best for the bulls if today’s lows throughout the sector hold.
XAU
https://stockcharts.com/h-sc/ui?s=%24XAU&p=D&yr=1&mn=11&dy=0&id=p77893453586&a=1059765171
That is some pretty strong confluence of support. Must also be close to a 50% retrace from the most recent high.
Based on the late January low and the recent high, it’s almost a Fib 61.8 percent retracement.
There’s a lot to like about the HUI’s price action but I don’t like those “curly” oscillating indicators.
Maybe this will be like June 2020. If so, we will take out the recent highs of the sector in just a few weeks. If we aren’t so lucky, it is still perfectly possible that we have seen the lows even if we do get the weekly MACD sell signal and need 6-7 weeks of chopping around before the uptrend resumes.
https://stockcharts.com/h-sc/ui?s=%24HUI&p=W&yr=3&mn=11&dy=0&id=p88938732271&a=1038741662
Would like to see some decent follow through, but I am hopeful that yesterday marked a major low in across the miners. The inverted hammers from two days ago across the sector and yesterday’s follow through give me a little more confidence that we have a major pivot in place.
My expectation is that we will get a couple of wide ranging moves both up and down between now and October, and that by the fall we will put in another major pivot low that could come close or even marginally exceed the current pivot. Thereafter I am expecting a major bull market run that should last 2-3 years and easily take us to new highs on the major gold mining indexes (likely multiples of the 2012 highs).
The alternative scenarios would be a slow stair-step higher (similar to the move off the 2018 low) or a rocket move to new highs. I give higher odds to the former. And even if we do get the rocket ride higher, I still think it won’t start in earnest until June-July, so choppy action for the next couple of months.
Pitchfork perfection…
https://stockcharts.com/h-sc/ui?s=SILJ&p=D&yr=1&mn=1&dy=18&id=p78380833971&a=1151687641