With gold sitting on the edge of a cliff, the XAU doesn't look good either. If gold breaks down then the XAU will fall to new lows.
Possible inverse head and shoulders pattern on GLDX. A trigger would be when it breaks above the neckline.
Possible inverse head and shoulders pattern on GG. A trigger would be when it breaks above the neckline.
KGC could find support here. Low risk entry.
Looks like this could breakout here soon.
Just like I expected, the GDX is now into the gap from a couple weeks ago. I'm expecting it to find support here soon. Should it break below 27-27.50, then I believe a new downtrend could be underway. Any sustained breakout over 31 would be very positive and would confirm that the bottom is in.
One positive that I see in the chart above is the fact that the GDX/GLD ratio already broke above its end of the month high in April. Lets watch the chart above closely to see what happens this week.
Original trade below....
URG is up over 40% since we posted this setup. Congrats to those who took the trade. I wouldn't take profits too early, as I view this as a long term trade. URG could retest the highs of 2011, but first we should see it hit our 1.40 target.
Original trade setup below.
I already hold a major position in this company for fundamental reasons, but technically its starting to look very interesting. As you can see the downtrend has been in place for the last 2 years. Once broken, I believe DNN will see a retest of the 2011 highs.
We are almost to the first target. I did beging to lighten a couple gold positions yesterday but nothing major. The gap below still concerns me and believe that it will get filled before we head higher.