Metals and Miners continue to rally out of the December lows, and a significant bottom is possible. There is still a lot more work to be done so we should curb our enthusiasm. But, I think we will look back at this period as an excellent opportunity. And if I’m correct, this could be the last time we see gold in the $1,200’s for a long time.
Last week I bought physical gold and silver and entered leveraged trading positions in USLV and JNUG. Note: I also purchased a little platinum; it is cheaper than Gold and even Palladium.
The Dollar is inching it’s way lower, and we need it to break the November low to push gold above $1,300. It may happen this week, or it could take a little more time.
Miners are stretched above their 10-day EMA’s and could use a pullback. However, the underlying trend seems powerful, and prices could continue to run away.
Oil broke higher, and we could see a top in the coming days. I’ll look for a reversal between $60.00-$63.00. If established, we should see a 4-6 week correction before the next advance.
-US DOLLAR- The dollar is still hovering near the trendline, and we could see a sharp break lower. Declining below November’s 92.43 low should be enough to push gold above $1,300.
-GOLD- Prices closed above the intermediate trendline. The next level of resistance arrives around $1,300. It may take the Dollar breaking below 92.43 to push gold through $1,300-$1,310. Once complete, we should see an assault on $1,350-$1,360.
-SILVER- Prices are at the $16.60 resistance level. Silver needs to make it above $17.00 to be in the clear. Prices should clear $17.00 when the dollar breaks down below 92.43.
-GDX- Prices continue to rally and are stretching above the 10-day EMA. We could see a pullback or prices may run away. If prices do correct, I’ll look to the moving averages for support. However, at this point, prices would have to close below $22.00 to threaten this powerful uptrend.
-GDXJ- Juniors continue to rise, and volume is expanding. However, the MFI is growing overbought, and a pullback is possible. Support lies between $32.00-$33.00. It would take a decline below $31.50 to jeopardize this uptrend.
-JNUG- Bought JNUG at $15.87. Prices could pullback, but the underlying trend look’s powerful. Prices would have to drop below $15.00 and then $14.50 to worry me.
-USLV- Bought USLV at $10.12. Prices are rising, and volume is increasing. Nevertheless, I’ll feel better if/when prices rally above the intermediate trendline. No stop at this time, but I wouldn’t want to see prices drop below $10.00.
-SPY- Stocks have been digesting the recent gains, and we could see another push higher into January. There may be a correction early next year as investors restructure their portfolios.
-WTIC- Oil broke higher, and I’ll be looking for a top between $60.00-$63.00. If confirmed, I’ll expect a 4-6 week correction.
-ERX- Prices are at new highs. Momentum is slowing, and we could see a top in the coming days. If established, I’ll expect a correction back to the 200-day MA (currently $27.72).
I hope everyone enjoyed the Holiday. It looks like 2018 will be a good year for precious metal investors.