Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Positive Action In The Gold Complex

By David TablishCommoditiesFeb 19, 2020 12:23AM ET
www.investing.com/analysis/positive-action-in-the-gold-complex-200508484
Positive Action In The Gold Complex
By David Tablish   |  Feb 19, 2020 12:23AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Over the last few weeks I’ve been writing a lot on the critical inflection point the PM complex was showing. Yesterday’s price action is an important step in confirming the potential bullish outcome. There is still more work to be done from a longer term perspective, but its one step at a time until total confirmation is attained.

Let's start with the daily line combo chart we’ve been following very closely which shows many of the smaller blue trading ranges that were breaking out yesterday. I’ve been looking for one more decline back toward the bottom of the August 2019 trading range to complete a possible 4th reversal point. You can use the ARCA Gold BUGS Index (HUI) as a proxy for the rest of the PM stock indexes which shows where the possible 4th reversal point would be.

If we don’t get that 4th reversal point, and the PM complex rallies strongly above its August 2019 high, then the trading range will have to be either a H&S consolidation pattern or a cup & handle. Note the S&P/TSX Venture Composite (CDNX) which looks like it is trying to put the finishing touches to its 2019 H&S. The SPDR® Gold Shares (NYSE:GLD) is still the strongest area within the PM complex as it is hitting new highs for this rally phase.

The two Canadian ETFs (BetaPro Canadian Gold Miners 2x Daily Bull (TSX:HGU) and iShares S&P/TSX Global Gold (TSX:XGD)) have been building out a nearly five-month parallel rising channel. Those types of patterns can break out in either direction but yesterday's price is suggesting that the HGU.TO is likely to break out to the upside as it cracked the top rail yesterday.

Daily Line Combo Chart
Daily Line Combo Chart

This next chart is the weekly combo chart for the PM complex which shows the potential H&S consolidation patterns that have been forming. So far none of the possible H&S consolidation patterns have given way yet. It looks like the VanEck Vectors Junior Gold Miners ETF (NYSE:GDXJ) may be one of the first PM indexes to take out its neckline, which would be bullish for the rest of the PM complex.

Weekly Combo Chart
Weekly Combo Chart

This last chart is the Invesco DB U.S. Dollar Index Bullish Fund (NYSE:UUP) / HUI combo chart we’ve been following for most of the rising channel on the UUP. This chart shows a good example of how negative divergences can fail just when you think they will work out. You can see the big breakout move out of the blue bullish falling wedge on the dollar bullish ETF, UUP, while the HUI has only traded sideways, chopping out the blue triangle.

Daily UUP/HUI Combo Chart
Daily UUP/HUI Combo Chart
Positive Action In The Gold Complex
 

Related Articles

Positive Action In The Gold Complex

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email