Bullish Correction Looming for Gold Shares

Source: Seeking Alpha, Kevin Barker (2/25/10)

". . .the charts are looking even better for the miners"

Gold prices appear to be headed higher, given the fact that price has broken above the 20- and 50-day moving averages. However, the charts are looking even better for the miners, as they show price being squeezed in a narrow range between the 200- and 50-day moving averages, and when that happens price tends to react violently—either up or down.

This triangular pattern is apparent on both the BUGS (HUI) and Philadelphia Gold and Silver (XAU) indices. I'm more bullish on the shares of the gold miners than gold itself, based on what I’ve seen on the 10 year GDX:$/GOLD chart. That's a ratio which compares the stock prices of the majors with gold futures.

Some good analysis of that came to me last week from Richard Rhodes of Rhodes Capital, courtesy of Chartwatchers.

Richard notes a large trading range from top to bottom, with each level tested multiple times in sequence. Also, we've got two large, almost identical bottoms (2000 and 2008), which suggest the next move will be a repeat of what happened after 2001 when we hit that subsequent top. The full stochastic (bottom) shows that a bullish phase came in 2001 after hitting a midpoint, which is where we are now.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."