Thursday, we saw a clear breakdown by GDX from a Double Top as expected and predicted in the update of the 11th PM SECTOR INTERMEDIATE CORRECTION GETS UNDERWAY — TARGETS while, again, as predicted in the last Gold Market update, the dollar rallied quite strongly out of its Double Bottom which is, of course, the reason for the weakness in the PM sector.
With regard to the PM sector, there is now nothing to do but wait. We know that the sector will put in a stellar performance once the dollar crashes and burns, which is now "baked in" and only a matter of time, but first, we must wait out this corrective phase.
Depending on whether the broad market holds up, which it may, given the degree of Fed meddling in the market, GDX looks like it will drop to the vicinity of its rising 200-day moving average, probably settling a little above it.
So that is the area where we will be looking to add to positions or make fresh purchases. On the flip side, if it doesn't drop that far before it turns up, we will be watching to see if it can succeed in breaking above the support that just failed at the lower boundary of the Double Top as a first sign that things are improving again.
Originally published on clivemaund.com on May 19, 2023, at 9:15 am EDT.
|Want to be the first to know about interesting Gold investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter.||Subscribe|
- Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
- From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.