LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

COT Gold, Silver and US Dollar Index Report - May, 24, 2019
By: GoldSeek.com

BIS reduces its gold swaps by two-thirds over last two months
By: Robert Lambourne

Gold Mid-Tiers’ Q1’19 Fundamentals
By: Adam Hamilton, Zeal Research

China Threatens to Stop Exports of Vital “Rare Earth” Metals to U.S
By: Mike Gleason

Every Bounce In Tesla Stock Can Be Shorted
By: Dave Kranzler

Another Gold Buyout Takes Center Stage
By: Marin Katusa

GoldSeek Radio Nugget: Laurence J. Kotlikoff
By: Chris Waltzek Ph.D., GoldSeek Radio

Does Ray Dalio really not know better than to invest in GLD?
By: Chris Powell, GATA

Precious Metals Update Video: Run for the safe havens!
By: Ira Epstein

Why Microsoft Shares Have Become a Safe Haven
By: Rick Ackerman, Rick's Picks

 
Search

GoldSeek Web

 
Gold Stocks are not too Oversold yet


 -- Published: Tuesday, 14 August 2018 | Print  | Disqus 

By Jordan Roy-Byrne CMT, MFTA

 

In recent days Gold has been more oversold than the gold stocks. Entering this week, the gold stocks were fresh off a major technical breakdown. An upside or downside break can lead to a market stretching beyond what typically qualifies as overbought or oversold. After Monday’s selloff, the gold stocks are hitting oversold levels but have more to go before reaching true oversold extremes.

 

Below we plot GDX along with the bullish percentage index (BPI), a breadth indicator, and new highs less new lows expressed as a percentage. The BPI declined to 26.7%. That remains well above its major lows of the past five years. New highs less new lows hit -33% Monday. That is close to an oversold extreme, which we would consider anything surpassing -40%.

 

http://www.goldseek.com/news/2018/8-14jb/08132018GDX.png 

 

GDX closed just a hair under $20.00 and does not have strong support until the December 2016 lows in the high $18s.

 

Next we plot GDXJ along with some custom breadth indicators. Those indicators show the percentage of stocks within a 55-stock basket that closed above their 20-day, 50-day and 200-day moving averages. While these figures tumbled on Monday, they have yet to hit extremes. For example, 19% of the basket closed above its 20-dma. Most lows occur below 10%. The other two are closing in on oversold extremes but are not quite there yet.

 

 http://www.goldseek.com/news/2018/8-14jb/08132018GDXJ.png

 

GDXJ closed Monday at a new 52-week low and a new 18-month low. It would need to fall another 6% to test strong support around its December 2016 low.

 

Monday’s decline in the gold stocks has moved the sector into oversold territory. Another day or two of a similar decline would likely put the various breadth indicators into extremely oversold territory. Within the context of a significant technical breakdown and a primary downtrend, one should wait for oversold extremes before turning bullish or covering shorts. We informed subscribers Sunday that we will take profits on our large short positions as GDX and GDXJ approach their December 2016 lows. To navigate the volatility ahead and prepare for an epic buying opportunity in 2019, consider learning more about our premium service.

 


| Digg This Article
 -- Published: Tuesday, 14 August 2018 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.