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Today's Mining Stocks and Precious Metals Market Comments:
Gold exploded higher, up 43.1 Tuesday, March 1st, with Silver sharply higher, up 1.18, while Mining stocks rose 12.48. We have updated charts on pages 60 and 65.
Take a look at the charts on page 58. Gold and its ETF GLD have both completed sideways triangles from 2020, and Gold has broken out decisively above this triangle. Generally, the direction of prices headed into symmetrical triangles is the direction they leave, which in present case means up. Gold's initial upside price target from this pattern is 2,350, with GLD, its ETF, headed toward 215, both targets likely to be reached by the end of 2022 or early 2023. A steady rise should be evident for most of this year, with occasional corrective declines along the way higher.
Mining stocks are very close to an upside breakout from their two year declining trend-channel, shown in chart on page 64. If the HUI can break out of this channel, above 300, its next stop should be 380, with a further upside of 500.
Our HUI key trend-finder indicators triggered a new Buy signal February 7th. Miners and Metals are finally showing signs that they are tired of recent sideways action, as Gold has struggled to break up out of its "Handle" pattern. Once Gold breaks out above it, the Handle will be complete, and a clear path for much higher prices will be in place. The triangles noted above are supportive evidence that Gold could soon break out north of the handle.
Gold started a Bullish Cup and Handle pattern in 2011. The Cup portion completed a year ago, and since then Gold has been declining inside the handle portion of the pattern, which is the concluding piece. While the timing for a breakout is slow and frustrating for Gold bugs, one thing we can be assured of is once it breaks out of the Handle, a powerful rally will follow, one for the ages.
The HUI key trend-finder indicator triggered a Buy signal February 7th, 2022, as the HUI 30 Day Stochastic triggered a Buy signal February 7th, and the HUI Purchasing Power Indicator triggered a Buy on February 7th. When these two indicators agree, it is a directional signal, and when at odds with one another, it is a combination neutral signal. The HUI Demand Power / Supply Pressure Indicator triggered a Buy signal February 14th. On Tuesday, March 1st, Demand Power rose 14 to 429 while Supply Pressure fell 5 to 395, telling us Tuesday's rise was powerful. |
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