"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 5 hours Why Criminals' Cryptocurrency Choices Matter To Average Investors
  • 1 day OPEC ‘Supergroup’ Keeps Oil Exports Subdued
  • 1 day One Belt, One Road, One Direction for Precious Metals
  • 1 day Vicious Trio Keeps Bitcoin in Chokehold
  • 2 days How Infrastructure Is Driving A Commodity Boom
  • 2 days What’s Really Happening With Venezuela’s “El Petro?”
  • 2 days Gold Bull and Bear Markets
  • 2 days 5 Big Drivers of Higher Inflation Rates Ahead
  • 2 days U.S. And China To Face Off Over Aramco IPO
  • 3 days Gold Bulls, Brace Yourselves – Fed Hikes Are Coming!
  • 3 days Stocks Fail to Hold Gains, But Still No Correction
  • 3 days Cryptojacking: A New Threat Vector To Critical Infrastructure
  • 3 days Why The Next Oil Boom Will Be Fueled By Blockchain
  • 4 days 5 Things Investors Should Know About China this New Year
  • 4 days Is The South Korean Crypto-Drama Finally Over?
  • 4 days Miners’ Rally? What Rally? Watch Out for More Fake Moves!
  • 4 days Four Percent 10-year Note Yield Will Be a Floor Not a Ceiling
  • 4 days The End Is Near
  • 4 days 5 Record Breaking Gemstones Even Billionaires Can’t Buy
  • 4 days Irredeemable Currency De-tooths Savers
Decision Time

Decision Time

Last week, I mentioned that…

Irredeemable Currency De-tooths Savers

Irredeemable Currency De-tooths Savers

An irredeemable currency system traps…

Stocks Fail to Hold Gains, But Still No Correction

Stocks Fail to Hold Gains, But Still No Correction

The U.S stock market indexes…

Gold Miners Look Attractive

Figure 1 is a weekly chart of the Market Vectors Gold Miners ETF (symbol: GDX). The black and pink dots represent key pivot points, which are the best areas of support (buying) and resistance (selling).

Figure 1. GDX/ weekly
GDX Weekly

GDX has already closed below the key pivot (support) at 53.92. In general, closes below support are never good. Old support now becomes new resistance. On the other hand, we find that price is sitting right at the 51.18 support level, which essentially represents the level from which prices "broke out" and moved higher back in September, 2010. I would look for this level to hold especially in light of the positive fundamentals for gold and gold miners. Bond yields are falling and historically, this has been a favorable back drop for gold. I discussed this dynamic in "Is This the Time to Buy Gold?"

Confirmation of a move higher would be made on a weekly close greater than 53.92.

 


If you would like to have TheTechnicalTake delivered to your email in box, please click here: It's free!!!

 

Back to homepage

Leave a comment

Leave a comment




Don't Miss A Single Story