Don't Ignore This Chart!

Is It Time To Go To $GOLD?

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Some days, its about what is not moving. That would be $GOLD. Here is the chart of GLD the tracking ETF.GLD 20140423
You can see the SCTR is at 3. This means it is behaving worse than 97% of the stocksand ETFs on the $TSX. We recently made a lower low and are below the 200 DMA. The MACD is diverging with a higher low, so that is very interesting. But look at the gold stocks as shown by XGD.TO. The Gold miners broke out today. Below is a chart with the GDX for the US gold miners tracking ETF.


GDX 20140423

GDX is breaking out on the mian price plot. The MACD is turning up as well. The SPURS relative strength lines are breaking out for both the GDX and the XGD.TO.

Here is something very interesting. Look at yesterdays and todays home page remembering that the price of gold has not started to move. This is yesterday's most active list. Gold was down $4.

Screen Shot 2014-04-23 at 7.10.52 AM

 

Here is today's most active list .OSK,K, YRI and ELD  are all gold stocks again. Gold is up $3.

Screen Shot 2014-04-23 at 11.54.32 AM

Here are the largest % up today. CG, SEA, MAG,DGC, FNV are all gold or silver. Gold is up $3.

  Screen Shot 2014-04-23 at 11.54.43 AM

I could go on, but the point is made. Some of the gold stocks are starting to move, well before gold starts to rise.

Good trading,

Greg Schnell, CMT

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Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More
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