The gold mining area is pretty interesting this week. While gold gets sold off every morning just before the stock markets open, it feels bad. Gold was down $34 on the week. Ouch, that's bearish! Still a pullback in the uptrend on a weekly chart, but it did make 4-month lows.
Copper also had a lousy week. The current conduit dropped 3.69%. This is similar chart formation to the Shanghai Index which also pulled back this week. A pullback within an uptrend.
So with the underlying metals pulling back, its no surprise the miners might pull back. But some miners had bullish weeks. The sudden move in Aura (ORA.TO) in August, with a pullback and now a new move higher while the underlying metal is pulling back, suggests a good place to look.
I can agree that some stocks were also weak on the week. Gold is very oversold. So is Silver. The last two Decembers have provided nice trade-able bounces. With the trend line breaking on Gold this week, and these stocks staying resilient, it suggests things might not be as bearish as the charts suggests. Stay tuned!
Greg Schnell, CMT, MFTA