So far the gold stocks don't feel like they have bottomed. We are getting the same sort of under-performing consolidation patterns like we have had over the last several months. I suspect that a test of the lows will come this week. This could all be negated if the XAU breaks out over 112 area. I doubt that this could happen, because Gold would have to rally back over 1500. Gold will probably bounce around between 1400 and 1480 for several more months.
A break of the lower trendline could produce a quick trade. If its broken, we will probably see the GLD retest 135 - 136.
This is pretty self explanatory. A trigger would be a breakout over the upper trendline with a stop a couple points below depending on your trading sytle.
I expect PVG to consolidate right here under the 50 day ma before moving higher.
Original trade below...
XOM is the largest market cap company within the SP500. Yesterday I went short with a position in ERY. As you can see XOM has broken its long term trendline and retested it this week. My stop is over the highs.
PVG has gotten killed along with every other gold stock. First target would be just over 7 and then just over 8. PVG has one of the highest grade resources on the planet at over 16 grams of gold per ton. Also note the positive divergences.
Gold finds support at the uptrend line. Should this area fail, then Gold will fall to around 1200.
This week the daily RSI got down to the 3rd most oversold value in over 30 years.
This weekly RSI shattered the old record as we got down to a value of 17.
Do the miners cotinue to fall??? Not sure, but we got that record Capitulation type volume I was talking about a couple weeks ago. Everyone at this point has pretty much given up. I doubt that we make it down to the 2008 levels.
XAU / Gold ratio continues to slide to all-time lows.
This chart I found to be very interesting. Notice over the last decade how the XAU vs the SP500 has bottom at this level.
NEM has been another successful trade. I would consider bringing stop down to just above 36 zone.
Original writeup below...
This setup is pretty straight foward. One could consider this a head and shoulder setup.