Gold And Silver Miners – Commodity Piece
Is It A Buy Or Sell Or Hold?
In our last Commodity Piece that we sent out yesterday (found here), we had an update on spot Gold, Silver and Copper. This piece dives into the recent developments in Gold and Silver Miners to analyze if they are a good buy, sell or hold at current levels.
Gold Miners ($GDX)
$GDX has gone on quite a run-up since it broke out of its contracting triangle. Our members have been on the right side of this move ever since the breakout at $33.84 (the initial article can be found here). Price has now reached $38.44 (+13.6% since our initial entry). With bullish momentum on one side, but the $39.93 resistance on the other side, the real question is if this is the time to book profits or to expect a break above the resistance for the next move up? That’s exactly what we’ll deduce in the coming charts!
An important development that has just occurred is the inverse head and shoulders breakout of $GDX relative to Gold. If this pattern plays out to its target, then $GDX should outperform Gold by 20% from current levels. Remember, this is relative (not nominal) outperformance, given that we’re looking at the ratio of $GDX/Gold. We’re closely watching this chart for a potential retest and hold of the neckline, which would improve the odds of such an outperformance by $GDX to play out.
In the next section (for Paid Members), we’ll provide a statistical view of Gold Miners ($GDX) to anticipate what to expect next and if it is a good time to buy/sell this name. We’ll also cover $GDX’s seasonality and our proprietary Cycles Forecast for additional insights. Finally, we’ll analyze Silver Miners ($SIL) and Junior Silver Miners ($SILJ).
NOTE: The wait is nearing an end for all our Founding Members. We’re about to reveal an extremely exciting new product this coming Monday, 22nd July 2024. We’ll send out an article that dives into this product and all the necessary details around it. This will be exclusively for our Founding Members, so consider upgrading to this status to have access to all the exclusive features this tier gets