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Precious Metals Stocks: Bottoming Patterns In Play

By David TablishStock MarketsNov 16, 2021 03:24AM ET
www.investing.com/analysis/weekend-report-pm-stocks-part-2--bottoming-patterns-200608482
Precious Metals Stocks: Bottoming Patterns In Play
By David Tablish   |  Nov 16, 2021 03:24AM ET
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Last week marked one of the most important weeks in the Precious Metals (PM) complex in a very long time. After 15 months of consolidating the last impulse move up, that began at the August 2020 high, we are now seeing a very symmetrical H&S bottom forming at the last reversal point in the August 2020 consolidation patterns which is classic Chartology.

I realize you are probably getting tried of me saying this, but the bigger the consolidation pattern, the bigger the move. The other aspect of a big consolidation pattern is that there is generally some type of recognizable smaller reversal pattern that forms at the reversal points which is one reason I’ve been so focused on the daily PM combo charts. These charts have been showing a very well defined H&S bottom forming.

H&S patterns can form as a top, bottom, or as a consolidation pattern. Whenever you see a H&S pattern, especially after a strong impulse move or after a trading range has been forming for an extended period of time, it has to be put into context within the bigger picture. First and foremost these are reversal patterns. One of the most common reversal patterns is with the double top or bottom next, so where they form is critical to understand.

Last week, we looked at 20 individual PM stocks that were exhibiting all the characteristics mentioned above. Because the PM complex is at such a crucial point right now, of putting in a very important low, which could be a low not seen for many, many years to come, I felt it important to show you in just a little more detail what this very important low looks like in real time—not weeks or months later, but in real time.

The daily combo chart below shows what each stock from last week's Weekends Report did 5 trading days later which ended on Friday. When looking at these charts keep in mind the PM stock indexes look very similar too many of the individual PM stocks, which is what you would expect to see especially in the small universe of the PM complex.

When scrolling down this list of PM stocks I put this week's price action first with last week's chart just below so you can compare what happened in the last 5 days of trading. Focus on the 2020 trading range and where the current H&S bottoms are forming. You will see many more H&S bottoms had breakouts this past week compared to the previous week. You will even see some breakouts from the August 2020 trading ranges which are a leading indicator that the rest of the PM complex will have their turn when they are ready to advance.

Again, focus on the last five days of trading compared to last week to see all of the breakouts that are underway this past week. In part three I will show you 25 more PM stocks that are also in the process of completing their own H&S bottoms that are forming at the 4th reversal point in their 2020 consolidation pattern. This is also forming the backtest to the top rail of the much bigger 2016 consolidation pattern.

Agnico Eagle Mines Limited (NYSE:AEM) on Nov. 12:

AEM Daily Chart
AEM Daily Chart

On Nov. 5:

AEM Daily Chart
AEM Daily Chart

First Majestic Silver Corp (NYSE:AG) Nov. 12:

AG Daily Chart
AG Daily Chart

On Nov. 5:

AG Daily Chart
AG Daily Chart

Alamos Gold (NYSE:AGI) week of Nov. 12:

AGI Daily Chart
AGI Daily Chart

On Nov. 5:

AGI Daily Chart
AGI Daily Chart

Argonaut Gold (OTC:ARNGF) on Nov. 12:

ARNGF Daily Chart
ARNGF Daily Chart

On Nov. 5

ARNGF Daily Chart
ARNGF Daily Chart

ASA Gold and Precious Metals (NYSE:ASA) on Nov. 12:

ASA Daily Chart
ASA Daily Chart

On Nov. 5:

ASA Daily Chart
ASA Daily Chart

AngloGold Ashanti (NYSE:AU) on Nov. 12:

AU Daily Chart
AU Daily Chart

On Nov. 5:

AU Daily Chart
AU Daily Chart

B2Gold (NYSE:BTG) on Nov. 12:

BTG Daily Chart
BTG Daily Chart

On Nov. 5:

BTG Daily Chart
BTG Daily Chart

Coeur Mining (NYSE:CDE) on Nov. 12:

CDE Daily Chart
CDE Daily Chart

On Nov. 5:

CDE Daily Chart
CDE Daily Chart

De Grey Mining (OTC:DGMLF) on Nov. 12:

DGMLF Daily Chart
DGMLF Daily Chart

On Nov. 5:

DGMLF Daily Chart
DGMLF Daily Chart

DNCVF on Nov. 12:

DNCVF Daily Chart
DNCVF Daily Chart

On Nov. 5:

DNCVF Daily Chart
DNCVF Daily Chart

Eldorado Gold (NYSE:EGO) on Nov. 12:

EGO Daily Chart
EGO Daily Chart

On Nov. 5:

EGO Daily Chart
EGO Daily Chart

Endeavour Silver (NYSE:EXK) on Nov. 12:

EXK Daily Chart
EXK Daily Chart

On Nov. 5:

EXK Daily Chart
EXK Daily Chart

Franco-Nevada (NYSE:FNV) on Nov. 12:

FNV Daily Chart
FNV Daily Chart

On Nov. 5:

FNV Daily Chart
FNV Daily Chart

Fortuna Silver Mines (NYSE:FSM) on Nov. 12:

FSM Daily Chart
FSM Daily Chart

On Nov. 5:

FSM Daily Chart
FSM Daily Chart

Galiano Gold (NYSE:GAU) on Nov. 12:

GAU Daily Chart
GAU Daily Chart

On Nov. 5:

GAU Daily Chart
GAU Daily Chart

SPDR® Gold Shares (NYSE:GLD) on Nov. 12:

GLD Daily Chart
GLD Daily Chart

On Nov. 5:

GLD Daily Chart
GLD Daily Chart

ABX/Barrick Gold Corp (NYSE:GOLD) on Nov. 12:

ABX / GOLD Daily Chart
ABX / GOLD Daily Chart

On Nov. 5:

ABX / GOLD Daily Chart
ABX / GOLD Daily Chart

Gold Resource (NYSE:GORO) on Nov. 12:

GORO Daily Chart
GORO Daily Chart

On Nov. 5:

GORO Daily Chart
GORO Daily Chart

Hecla Mining Company (NYSE:HL) on Nov. 12:

HL Daily Chart
HL Daily Chart

On Nov. 5:

HL Daily Chart
HL Daily Chart

Precious Metals Stocks: Bottoming Patterns In Play
 

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Precious Metals Stocks: Bottoming Patterns In Play

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