Point & Figure Daily: Chart Patterns, Signals & Trends

The SPDR Gold Shares ETF rose 0.56% on Tuesday, outperforming the equity market. A fresh box filled ($124) to the upside and a breakout buy signal is three boxes away at $130, a Triple Top. Moving to $134 would activate the rounding bottom of the past 5 years, leading to further upside - a chain of dominoes. Gold miners are also confirming the yellow metal's strength.

Gold ETF P&F

GDXJ [PRICE 3 STAGE REVERSAL | INDEX RELATIVE 3 STAGE REVERSAL] | Target = $37 (initial), Stop = $26

The Junior Gold Miners ETF outperformed on Tuesday, +2%, as the price pressures the 2.5 year downtrend. The GDXJ Point & Figure charts were last analyzed in the 2018 December 21st report, at the time looking for a breakout signal, and that arrived this month. That Double Top also completed the final stage of our 3 stage reversal set-up, implying a return to the 2016 peak at least.

The GDXJ P&F relative ratio is versus the NASDAQ 100, to illustrate the old industry versus new rotation. Here too, a 3 stage reversal set-up is evident, albeit on a relative basis. The miners are positioned to outperform the tech heavy index over the medium-term.

GDXJ P&F
GDXJ point and figure

SSRM [PRICE DOUBLE TOP | INDEX RELATIVE DOUBLE TOP] | Target = $17, Stop = $10.50

Gold explorer SSR Mining broke above a 6 month base in December and showed confident upside follow-through since. Trading is comfortably above both its 10-week and 30-week moving average. The multi-year decline into the 2016 low is over, with the primary trend attempting to turn up.

The P&F relative ratio is plotted against the NYSE Composite. A potential base has taken shape over the past 5 years and would confirm on a break above the 2016 highs.

SSRM chart
SSRM P&F

TTWO [PRICE DOUBLE BOTTOM | INDEX RELATIVE DOUBLE BOTTOM - forecast] | Target = $92, Short Stop = $112

Take-Two Interactive Software was analyzed in the September 27th report, we got it wrong, but the stop-loss at $128 enabled an exit ahead of the stock sinking to its December low at $98. A Double Bottom sell signal printed yesterday, following a two box Bull Trap into a Bearish Trendline.

The TTWO P&F relative ratio, versus the NASDAQ 100, is looking rather toppy with the sideways movement over the past year. Two further box fills to the downside would activate that top as well as print a relative sell signal.

Results due on February 6th.

TTWO P&F
TTWO PnF

PII [PRICE DOUBLE BOTTOM | INDEX RELATIVE DOUBLE BOTTOM] | Target = $70, Short Stop = $89

Polaris Industries dropped Tuesday following earnings, generating a sell signal. The downtrend off the record high is likely resuming following an oversold bounce off its December low.

The Polaris P&F relative ratio, plotted against the NYSE Composite, shows clear downward direction, not far off a new 52-week low. Underperformance should continue.

Polaris P&F
Polaris Pnf