| The charts below make it crystal clear that we are on the verge of a major bull market advance across the PM sector. While these charts are for the Market Vectors Junior Gold Miners ETF, what happens to the GDXJ has major implications for the whole sector, for the simple reason that it is not going up without the entire sector going up too.The above comments are edited excerpts from an article* by Clive Maund (clivemaund.com) entitled GDXJ Signals that MAJOR BREAKOUT and STRONG PM SECTOR ADVANCE IMMINENT…
The following article is presented courtesy of Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and the FREE Market Intelligence Report newsletter (register here; sample here) and has been edited, abridged and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.
Maund goes on to say in further edited excerpts:
Most investors or would-be investors in Precious Metals stocks are so soured by the seemingly interminable bear market in the sector, that has gone on for 3 years now and been made even worse by its having unfolded against the background of a rising stock market, that they won’t see the major opportunity now being presented, even when it’s as plain as the nose on your face, which it is. This is a bit sad really, because huge profits look set to be reaped by those buying the sector now.
The 5-year Chart
The 5-year chart clearly shows an orderly 3-year long bear market, with a Head-and-Shoulders bottom forming over the past year that is now at the point of completion. The volume pattern is strongly bullish, with the persistent heavy volume all this year being a sign of a bottom, and the record volume last week as the price rose up out of the Right Shoulder of the pattern marking the start of an expected breakout drive out of the base area, and out of the downtrend – a development that can be expected to trigger a wave of buying and sharply rising prices – last week was only the beginning.
We can see the Head-and Shoulders bottom in much more detail on the 2-year chart. There was huge record volume on last week’s rise out of the Right Shoulder low of the Head-and-Shoulders bottom pattern, that caused volume indicators to spike quite dramatically. This is VERY bullish price/volume action.
The short-term 6-month chart shows that GDXJ has become short-term overbought after last week’s sharp rally, but that is not expected to stop it for long – after consolidation or a minor reaction it should continue to make strong gains.
Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
*http://www.clivemaund.com/article.php?art_id=3229&PHPSESSID=641e20d7a46a7f89758364790bf9e0a2 (© 2004-2014 Clive P. Maund.)
Get ready for an incredible bounce higher in the gold & silver junior miner sector. Here are five reasons why. Read More »
I am 100% confident that 1) precious metals will bottom this year and resume a new leg to the upside, 2) the extreme emotions right now regarding gold and silver are typical at major turning points and 3) all the underlying fundamental, cyclical and technical conditions for a new bull market in gold and silver are in place. Here’s an update on the latest action in gold, silver, platinum and palladium Read More »
Before this great financial crisis ever comes to a close, you’ll see the Federal Reserve copy Europe and also implement negative deposit rates to try and get commercial banks to lend money into the economy. I have absolutely no doubt about it – and it will have three chief consequences for the markets. Let me explain. Read More »
Should gold stock investors and speculators worry about the effect of a decline or cyclical bear market of the S&P 500 on the mining sector? You’ll be surprised at the answer! Read More »
Which gold/silver mining companies own quality undeveloped gold and silver deposits in safe stable countries – and are extremely well managed? Such companies offer exceptional value in that they provide the best exposure to a rising precious metals price environment. Below are a number of things to look for when considering an investment in such companies. Read More »
It’s not crazy to think that gold stocks could easily double from their current levels if you realize the extreme condition the gold-stocks-to-gold ratio is in – and if you know your market history. Let me explain. Words: 336; Charts: 1 Read More »
Stocks are pulling back in preparation for one final mind-blowing surge to top off this five-year bull market. Gold, on the other hand, looks like it is setting up for a final bear market capitulation phase where every gold bug finally throws up their hands in disgust and jumps over to the stock market right as it’s putting in a final bubble top. For those…that are sitting in cash, this final capitulation is going to represent one of the greatest buying opportunities of this generation. Read More »
How much capital has the management team taken out of their pockets and put directly into the company? What amount of shares of a company are owned by funds or big financial institutions. The extent of such ‘skin in the game’ and ‘smart money’ involvement is crucial in deciding whether or not to invest in a particular company. Here’s why. Read More »
90% of the management teams you interview will be unable to present a reasoned argument for pursuing their project and to justify the approach they are using so let’s examine Rick Rule’s 11 “must ask” questions, one by one. Read More »