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

Gold Market Update: Breathtaking Reversal to the Upside?
By: Clive Maund

Gold Seeker Report: This Week in Mining Issue #6 -- Temporarily Suspended Mining Operations
By: Chris Marchese, Chief Mining Analyst at GoldSeek.com

Negative real rates puts shine on Getchell's gold
By: Richard (Rick) Mills, Ahead of the herd

Gold Price Discovery of Post-QE Infinity: Gold Miners Will Become the Next Proxy for Gold Price
By: Peter Spina, GoldSeek.com

The Financial System Was FUBAR Before The Virus Crisis
By: Dave Kranzler

Precious Metals Update Video: Big action in Gold
By: Ira Epstein

Postcards from the Frontline
By: John Mauldin, Thoughts from the Frontline

COT Gold, Silver and US Dollar Index Report - March 27, 2020
By: GoldSeek.com

Gold traders are paid not to redeem Comex EFPs, London sources say
By: Chris Powell

Silver Minersí Q4í19 Fundamentals
By: Adam Hamilton

 
Search

GoldSeek Web

 
You Should be Buying Gold Stocks Now


 -- Published: Friday, 6 December 2019 | Print  | Disqus 

Jordan Roy-Byrne CMT, MFTA

A few weeks ago we noted the bullish setup for 2020.

Macro developments, one way or another will tend to favor Gold. There isnít a realistic scenario that isnít Gold bullish.

Note the comments from various Fed-heads last week. They are laying the groundwork to target higher than 2% inflation and wonít consider raising rates anytime soon.

And if they have to resume cutting rates Gold will obviously move higher.  

On the technical side, GDX and GDXJ are in solid uptrends and trading within huge long-term bases.

The setup is there for a very profitable 2020 and recent developments should make us even more bullish.

Take a look at the chart of GDX and the GDX advance decline (AD) line below.

There are several very bullish developments.

First, note the price action. GDX has held above $26.00 three times. Its been so strong that it hasnít tested the 38% retracement from the September 2018 low of $25.70. 

Second, on Tuesday the AD line (an important leading indicator) hit a three year high! That is an incredibly strong and significant positive divergence. 

GDX, GDX Advance/Decline Line, GDX vs. Gold

Finally, GDX has been outperforming Gold. The GDX to Gold ratio closed Tuesday at a two month high. Keep in mind, this is during a correction for GDX.

While there are quite a few positives for GDX, it isnít even the strongest part of the sector! The riskier parts of the sector such as juniors and silver stocks are outperforming.

Below we plot GDXJ against GDX and SIL against GDX. 

The sector peaked at the start of September and even as it has corrected, both SIL and GDXJ have clearly outperformed GDX and the ratios have broken above their 200-day moving averages.

GDXJ vs. GDX & SIL vs. GDX

There are quite a few bullish developments as the sector has corrected and when we consider the massive bases in GDX and GDXJ (see below), it should make us all the more bullish for the next 12 to 18 months.

GDX & GDXJ Daily Bar Charts

The strong breadth (GDX AD line), the outperformance against Gold and the outperformance of the riskier groups (SIL, GDXJ) are exactly the things we want to see ahead of a major breakout. In other words, the market is leaving hints.

If you have followed my work, you know that Iím usually conservative. At times over the past few years I have been too cautious. But I have been a long-term bull.

Make no mistake. The next 12 to 18 months have a chance to be extremely profitable in gold stocks, silver stocks and gold and silver juniors.

Get positioned soon, buy on weakness and hold.

We continue to focus on identifying and accumulating the juniors with significant upside potential in 2020.

Jordan Roy-Byrne CMT, MFTA


| Digg This Article
 -- Published: Friday, 6 December 2019 | 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.