Today's charts are all bullish for a change as we cover favorable P&F action from the Gold Miners. Many of the charts, particularly the relative ratios, are rising off long-term levels, and may mark the start of a long-term turnaround by the industry.
GDX [PRICE DOUBLE TOP - forecast | RELATIVE LOW POLE] | Target = $25 (initial), Stop = $18
The Gold Miners ETF is just 56 cents away from a Double Top buy signal. We do not usually trust the first buy signal following a series of sell signals in a correction but the price has turned up from a Bullish Trendline drawn up from the 2016 low. Should the Double Top print and there is upside follow-through, it would pressure the 7 year downtrend.
The relative ratio chart is showing potential as it moves up from a 2 year floor. A Low Pole is confirmed but ideally a bullish breakout signal is needed for more concrete outperformance confirmation.
KL [PRICE DOUBLE TOP | RELATIVE DOUBLE TOP] | Target = $30, Stop = $22
Kirkland Lake Gold is the only miner which is trending like a momentum stock. The price and relative charts have both pulled out of Bullish Triangles, printed Double Top breakouts, and are at record highs. Little to fault technically, we would see any sector weakness as a chance to buy KL.
AEM [PRICE 3 STAGE REVERSAL | RELATIVE LOW POLE - forecast] | Target = $51, Stop = $33
Agnico-Eagle Mines printed a Double Top breakout last Friday, the final step to achieve a 3 Stage Reversal across from the December 2016 low. That set-up provides an excellent risk-to-reward ratio, targeting a return to the top of the 2 year range at $50.
The relative ratio chart has a greater box size to show the rounding basing development over the past 5 years. Now is the time to consider longs for the long-term as the risk is limited on a relative basis, to the 2018 low.
FNV [PRICE DOUBLE TOP | RELATIVE LOW POLE] | Target = $86, Stop = $69
Franco-Nevada has been working higher since September, defeating the correction off the November 2017 high. A Double Top printed in November, with another last week.
Box size increased on the relative ratio chart to highlight the 10 year floor. October saw a reversal off that floor with a Low Pole confirming this month. Potential for outperformance to continue all the way up to the top of the range, last visited in 2013.
GOLD [PRICE DOUBLE TOP | RELATIVE LOW POLE] | Target = $104, Stop = $84
Randgold Resources defeated its 2018 correction in October with a sharp rally off its September low. The price then consolidated in a Bullish Triangle, with an upside resumption following this month. Up trend should extend towards $100.
The relative ratio again uses an increased box size to highlight the important shelf going back to 2008. October saw a 3 box reversal up from that shelf, with a little upside follow-through this month. Outperformance could extend for the next few years.