As I stated in this post, the shares of Royal Gold point to higher prices, as the momentum in the shares continues to trend higher while volume levels confirm increased buying interest. This setup concurs amongst the back drop of a still positive timing model indicator and as we enter the strongest seasonal month for gold performance of the year.
It may also be illustrative to review the charts for the broader gold miners and gold, here represented as the Market Vectors Gold Miners Index (ticker GDX) and the Gold Spider ETF (ticker GLD), respectively. Both charts are shown below.
Market Vectors Gold Miners Index (ticker GDX)
Gold Spider ETF (ticker GLD)
What should be apparent is that both the above charts show similar characteristics to the chart of RGLD. Both pulled into the downtrend swing point and sold off on declining volume levels, confirmed not only by a visual check of the volume but also by the improving accumulation/distribution lines. Momentum (RSI and MACD) remain strong while the overbought conditions alleviate. If the strength in RGLD translates to the broader gold investment complex and if we continue to pullback on lighter volume, I expect higher prices across the spectrum of precious metal investments. Looking at the GDX, I could see prices pulling into the $35 to $36 range. As for the GLD, the $145 price level, give or take a few points, may be in the offing.
It may also be illustrative to review the charts for the broader gold miners and gold, here represented as the Market Vectors Gold Miners Index (ticker GDX) and the Gold Spider ETF (ticker GLD), respectively. Both charts are shown below.
Market Vectors Gold Miners Index (ticker GDX)
Gold Spider ETF (ticker GLD)
What should be apparent is that both the above charts show similar characteristics to the chart of RGLD. Both pulled into the downtrend swing point and sold off on declining volume levels, confirmed not only by a visual check of the volume but also by the improving accumulation/distribution lines. Momentum (RSI and MACD) remain strong while the overbought conditions alleviate. If the strength in RGLD translates to the broader gold investment complex and if we continue to pullback on lighter volume, I expect higher prices across the spectrum of precious metal investments. Looking at the GDX, I could see prices pulling into the $35 to $36 range. As for the GLD, the $145 price level, give or take a few points, may be in the offing.
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