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hidayat Ullah
Sep 24, 2023 3:09AM ET
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Sinking Miners Boost Our Profits: Should We Stay Short?
www.investing.com/analysis/sinking-miners-boost-our-profits-should-we-stay-short-200642094
Sinking Miners Boost Our Profits: Should We Stay Short?
By Sunshine Profits (Przemyslaw Radomski, CFA) | Sep 22, 2023 03:50PM ET I warned the miners were weak, and they again buckled under the pressure.
As a result, yesterday’s comments remain up to date, and I encourage you to read them to understand what should unfold in the weeks ahead.
A reversal can be powerful. Two are often a game-changer. We just saw three.
On Wednesday, I wrote the following:
The momentum remains positive, so reaching this target – close to $1,965 – might be what triggers the reversal.
The reversal is likely anyway because the fact that both resistance lines cross creates a triangle-vertex-based reversal point. And it is due right about now.
Consequently, we might see some very interesting action in the upcoming days – with gold likely reversing its course, but quite likely from slightly higher price levels.
On the chart below, it’s clearly visible that gold did indeed move to the above-mentioned combination of resistance levels.
And on the chart below, you can see that it also reversed.
The reversal was clear, and if we want to be precise, gold moved slightly above the resistance line and then invalidated this tiny breakdown, which made the reversal even more bearish.
Besides, gold was not the only part of the precious metals sector that reversed in a profound manner. We saw the same things in silver and mining stocks.
Gold SDPR
The gravestone doji candlesticks are a form of an intraday reversal, which is likely to be followed by lower prices.
Since we saw not one but three of such reversals, the overall bearish implications are much stronger than if we just saw one. This further reinforces the scenario that I featured previously – namely, the precious metals sector corrected after the bullish reversal, but it wasn’t likely to correct substantially before turning south once again. What we just saw is confirmation that the move lower is about to start. It’s not yet too late to position oneself to benefit from it, but it might soon be.
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Sinking Miners Boost Our Profits: Should We Stay Short?
Comments (4)
param walia
Sep 23, 2023 9:09PM ET
Agreed miners are weak with gold at 1940 . But it takes just one day to change
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Gonzalo Ribeiro
Sep 23, 2023 12:02PM ET
Most miners are garbage and are managed by directors who are completely clueless. Just stack physical or buy GLD/SLV as part of a 5-15% PM allocation within your portfolio and you'll be fine. Gold and silver are real money, not speculative assets
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Mitch Hoch
Sep 22, 2023 10:03PM ET
You, sir, are a biased BEAR. WHY? The definition of "doji" comes from the Japanese phrase, meaning "the same thing." First and foremost, this candlestick type indicates that neither the bullish nor bearish faction has absolute control. Depending on where this candlestick type occurs, it can indicate a market consolidation or, if found after a strong rally or correction, the potential for a pivot from bullish to bearish or bearish to bullish. This week’s doji candlestick did not meet that criteria, so it is most likely an indication of consolidation. With over 40 years in Precious Metals, I do agree that a final washout down could happen, but it's a win/win scenario as very quickly it will reverse and a $100 up day from the bottom is possible. PR, you better be very nimble for your investors as a melt up will decimate your investors on the short side. We dont know if it's weeks or months. Timing the market is a fools game. "Don’t wait to buy gold, buy gold and wait."
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