Originally published on Mar. 18, 2022 by TraderStef at CrushTheStreet
Today’s analysis is the first gold and silver mining stock poker since spring of 2020, as a majority of tradable stocks in precious metals have trended downward with scant opportunities to the upside. The following table is the final performance summary of mining stocks to consider from the 2019-2020 series:
“Performance of the following miners is based on the first ‘close’ date a price populates in a column vs. the most recent high. Carryovers from Jun. 2019 were retained due to positive technicals. Overbought or underperformers were benched.” – May, 2020
After scanning all the mining stocks from an extensive watch list, I selected a few to consider today from a technical analysis point of view. Many others may look promising due to intermittent rallies or your own personal trading practices, but few survive my stringent selection guidelines for intraday scalps or short-term swings. Keep in mind that gold and silver are approaching spring seasonality and the price action tends to be choppy before a summer rally. Due to the uncertainty in financial markets and war in the Ukraine, stay on your toes because anything can happen.
My primary filter is that a stock must have consistent trading volume and at least 1 million shares traded on an intraday basis with no dead minutes to ensure ample liquidity for trading large positions. Secondly, identify chart patterns and studies that show the potential for a near-term rise in price. The last issue you want regardless of the time horizon is to be stuck in a block of shares with no liquidity and a bid/ask flow that’s giving you the middle finger while trying to close out (or add) positions.
A weekly chart provides a window of at least one week and sometimes longer. Always revaluate charts on a daily basis using several candlestick time frames to identify any new pattern developments and changes in technical indicators. The Fibonacci retrace levels included on my charts are not definitive price points and should be used to identify resistance or support areas that are not indicated by other studies. I am posting the weekly charts for $GDX, $GDXJ, and two mining stocks from today’s watch list. Here are links to the GDX VanEck Vectors Gold Miners ETF and GDXJ Junior Miners ETF so you can peruse the current weighting of miners included in their baskets.
To view a larger version of any chart below, right-click on it and choose your “view image” option.
GDX weekly chart as of Mar. 18, 2022 close…
GDXJ weekly chart as of Mar. 18, 2022 close…
$AG – First Majestic Silver weekly as of Mar. 18, 2022 close…
$AUY – Yamana Gold weekly as of Feb. 21, 2020 close…
For a Few Dollars More – Clint Eastwood’s Entrance (1965)
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