Snippet from August 24, 2017 Pivotal Events
Our “Comfort” position is not yet comfortable.
However, the GDX/Gold continues to build a saucer-bottoming pattern. The lows on the ratio have been 170 in May and 173 in July. At 180 now, it needs to get above the 20-Week ema to set the uptrend. Which is also at 180.
Our other “Comfort’ indicator is the gold/silver ratio and it is not supportive for the sector.
The US dollar is building a base to stage a significant rally.
There could be a liquidity crisis this fall that could pull gold and silver stocks down.
This could set up an ideal low for a sustainable rally for the sector.
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