Commodities Analysis and Opinion
A Major Turn In Gold Stocks?
2022.10.05 05:05
Precious metals have enjoyed a very strong rally since early last week. Previously when broke $1675, we noted the non-confirmations of the breakdown. These included not breaking down and fold not breaking down in real terms.
There are quite a few positives for the stocks. The advance decline line is showing its third most significant positive divergence of the last 7 years. The other two were at the 2016 and 2020 bottoms.
Meanwhile, GDX (as well as ) is showing positive divergences against the as well as in terms of new 52-week lows. Specifically, GDXJ has made fewer and fewer new 52-week lows even as the index made lower lows last summer.
