Forgive me! I couldn't resist that cheesy headline stolen from the Quiet Riot album title. The headline is true, metals had a healthy day, as did other natural resource ETFs. I've highlighted notable ETFs right from our DecisionPoint ETF Tracker Report found in the DP Tracker Blog. This displays only a small portion of the ETFs we cover in the Tracker Report and only the section that sorts by the day's percentage change. I've selected four of the charts for analysis.
Let's look at the Gold ETF, GLD. What dominates this chart is a bearish reverse flag formation. However, rather than executing with a breakdown below the flag, it broke out above the flag. When you see a bullish outcome to a bearish technical pattern it is a sign of positive momentum. This is confirmed by the Price Momentum Oscillator (PMO) which bottomed. A PMO bottom in oversold territory is generally a good set up.
Uranium looks very bullish right now. There is a nicely formed bullish flag at the same time there is positive momentum. In addition, not only is the PMO rising but it is only in neutral territory with room to step up before getting overbought.
The Silver iShares ETF, SLV looks very similar to GLD. There is a reverse flag which is considered bearish, but instead of breaking down, price broke out. The PMO is very close to a positive crossover its 10-EMA which would generate a PMO Crossover BUY signal.
The Gold Miners ETF is sending us mixed messages. On the one hand there is a bearish reverse flag formation while on the other hand, the PMO just crossed over its EMA generating a PMO BUY signal.
I encourage you to go to our DP ETF Tracker, find an ETF on a line of the report that interests you and click on it. The chart will come up and you can analyze and annotate it just as I did above. To access the report you do need to be a StockCharts.com member.
So, the answer to the question you've all been contemplating since reading my first sentence...yes, I am a fan of "80's hair bands".... isn't everyone?
Happy Charting!
Erin
