Technical Picture In Precious Metals And Miners Based On Andrews Pitchforks

TDC Note – Like Turd Ferguson at TFMetals Report, technical analysis is imperative to understanding what the markets are doing. Yes, the gold and silver market are both rigged and we all know, however, if you don’t understand and make an attempt to see how the big players are moving the market around, because the big hedge funds are still in the market, then you are only getting half the picture. Better to see with both eyes than just one. from Gold Silver Worlds

This excellent technical research was sumitted by Bryan, editor-in-chief at Pitchfork Playground, who applies the Andrews pitchfork methodology on the precious metals complex (metals and some of the large miners):

Gold and Silver had become overbought in recent weeks along with many of the mining stocks. On Friday the sector took a turn lower with Gold and Silver both dropping through major support levels.

Our trading plan doesn’t allow for shorting the precious metals sector so at this point we are waiting for the pullback to complete before taking new positions.

If you are accumulating the sector on weakness these symbols are displaying relative strength: NEM, SLW, CDE, HL and PAAS.

ETFS & INDEXES

GLD – SPDR Gold Trust – daily chart

gld-6-feb-2015

GLD dropped through support at both the 200 and 50 day exponential moving averages (EMA) as well as the horizontal support / resistance level – there is potential support at the lower median line of the blue Andrews pitchfork and the minor horizontal support / resistance level

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SLV – iShares Silver Trust – daily chart

slv-6-feb-2015

SLV dropped through support at the 50 day EMA to test support at the lower median line of the blue Andrews pitchfork and the horizontal support / resistance level

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GDX – Market Vectors Gold Miners ETF – daily chart

gdx-6-feb-2015

GDX closed above the 200 day EMA on Thursday but gapped lower on Friday penetrating support on the moving average as well as the horizontal support / resistance level – the downward move also penetrated the upper median line of the blue modified-Schiff pitchfork with price closing below that level – potential support comes in at the minor horizontal support / resistance level and the 50 day EMA below that

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GDXJ – Market Vectors Jr. Gold Miners ETF – daily chart

gdxj-6-feb-2015

GDXJ dropped below the 50 day EMA and the lower median line of the blue Andrews pitchfork – the next support level occurs at the minor horizontal support / resistance line – the MACD histogram was rising towards zero until Friday

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CEF – Central Fund of Canada – daily chart

cef-6-feb-2015

CEF gapped lower Friday penetrating the 200 day EMA and the horizontal support / resistance level – price found support on the upper median line of the blue modified-Schiff pitchfork and the 50 day EMA – Friday’s bar is an interesting doji showing that buyers and sellers did battle and the buyers came out slightly ahead – price closed Friday above a minor support / resistance level

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HUI – ARCA Gold Bugs Index – daily chart

hui-6-feb-2015

HUI dropped through support along the upper median line of the red Andrews pitchfork to potential support at the median line of the blue Andrews fork

GOLD MINERS

GG – Goldcorp – daily chart

gg-6-feb-2015

GG gapped lower on Friday and penetrated the 200 day EMA – price closed above a level where support has been found recently (solid line) – notice that the support / resistance line is actually a little lower (dashed line) – lines that get tested from both sides, like the dashed line, tend to be revisited in the future – a test of this dashed line would also allow price to test support on the upper median line of the red Andrews fork and the median line of the blue Andrews fork

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KGC – Kinross Gold – daily chart

kgc-6-feb-2015

KGC is pulling back to test support at the 50 day EMA, the lower median line of the blue modified-Schiff pitchfork and the horizontal support level

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NEM – Newmont Mining – daily chart

nem-6-feb-2015

NEM gapped lower Friday to test support on the horizontal support / resistance level – the doji candle shows that buyers and sellers fought each other and neither side could gain an advantage

SILVER MINERS

SLW – Silver Wheaton – daily chart

slw-6-feb-2015

SLW has been one of the stronger mining stocks for months – there are five rules or guidelines for us to follow when we are working with Andrews pitchforks – one of them says that price is always targeting the next median line – this means that back in November when price dropped through the red fork’s median line and plunged lower, the target for the move was the lower median line around $14.60 – the fact that price found support and turned back higher without testing the lower median line is a sign of strength – from that low point SLW has been making a series of higher lows and higher highs which defines an uptrend

another sign of strength in SLW is that all of the recent action has occurred above the 200 day EMA – price found support at the EMA on Friday – the long wick above the body of Friday’s candle tells us that sellers were in charge

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