Here’s a Gold Miner that Scott thinks it’s worth watching: $GFI – April 13, 2022
GDX NEX 7GOLD GFI GDX GLD
This is Scott with your Chart of the Day. I want to take a look at GDX ( NYSEARCA: GDX ) and a gold miner that I think is definitely worth watching.
If you look at GDX ( NYSEARCA: GDX ) here. I have a bunch of lines here, you can tell I have been watching gold for a while. It is finally doing something as it is trending nicely above all of the major moving averages. It is above all of the major moving averages and you can see it is a tad extended above the 8-day.
Now, in this market, we’ve noticed that it has been really hard to buy breakouts. Anytime we get a big breakout in anything some sellers come in and push it right down. And so I am keen to really pay attention to stocks close to their major moving averages.
In the Gold Sector, it is hard to find those because if you look at some of the leaders like NEM ( NYSE: NEM ) it is working fine. But look how high it is above that 21-day exponential period moving average, that’s the gray line. It is even slightly above the 8-day here. So any buy here, in my opinion, is hard to do with any size because you are kind of chasing.
Let’s look at GOLD ( NYSE: GOLD ), it’s okay but it is just kind of going sideways, some quiet inside days; and so these are alright.
But I found GFI ( NYSE: GFI ) today, Gold Fields, and it’s really nice and close to the 8-day and the 21-day. You can see I have drawn this downward sloping trendline, so we have a clear level of resistance, some clear support, longer-term here, shorter-term here. And so I think that this could potentially be actionable if we can get a break out of this clear consolidation zone.
I think it makes sense to have an alert on this, maybe around 15.80 and we will want to see a strong move coming out of this cluster of moving averages, coming on higher than average volume. And so, that is what I think you should be watching for here on GFI ( NYSE: GFI ) if the gold miners and GLD ( NYSEARCA: GLD ) can continue to kind of chug out of this recent consolidation zone.
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