In this post, I would like to share with you the comparative dynamics of gold and top gold stocks starting from the date when the recent local bottom of gold was set at $1241 on the 7th of October, 2016 to see how top gold stocks reacted to the recent gold reversal.
Chart 1. Gold And Top Gold Stocks: Not All “Birds” Flew To The North
Back in August of this year, I shared with you the comparison charts of gold and silver stocks. The precious metals hit the new highs before that, and so did the mining stocks. After that, the prolonged correction of underlying assets (gold and silver) put pressure on the mining stocks. Below is the chart showing you the 6 stocks’ behavior.
Chart 1: Top Mining Stocks: The Leaders Lost The Most
Back in March in my major gold update I warned you that what was being billed as a New Bull Run could easily turn out to be a complex correction. In that post’s chart, I didn’t put the small Fibonacci retracement level at 38.2% as I was impressed with the strong move to the upside from the bottom and I thought it would be useless. These days the situation has changed and I put an updated chart below.
Chart 1. Gold Monthly: First Serious Resistance
Chart courtesy of tradingview.com
Last month the gold stalled at the red trendline resistance as the price closed 25 dollars below the month’s maximum. This month the price action will be crucial as there is no room to step back. It would be hard work to crack double resistance within the $1360-1381 range, which consists of the red trendline and the 38.2% Fibonacci retracement level. Continue reading "Gold Is At The Crossroads! Which Stock Is The Most Vulnerable?"→