· Yesterday's weakness in the gold equities has been on relatively low volume and stocks have yet to break any key technical levels.
· The On Balance Volume indicator continues to strengthen in most gold stocks, signalling that the volume on up days continues to outweigh the volume on down days.
· The US Dollar has been strengthening since last week's lows but remains in a downtrend from the January highs. It is important to note that May is one of the seasonally strongest months for the Dixie and as such there is still potential for further upside. However given the weakness in the monthly and weekly charts, including monthly and weekly MACD sell signals, we think the rally will be shallow.
· With the potential for further USD strength in the near-term there is still risk of weakness in gold equities, however unless we see technical levels start to break we remain buyers of the dips.
· Below we highlight some key levels to watch on a number of gold names:
o Seniors: ABX, G
o Intermediates: AEM, DGC, ASR
o Juniors: KDX, OGC
o Royalties: RGLD, SSL
Barrick Gold Corp:
Goldcorp Inc.:
Agnico-Eagle Mines Ltd.:
Detour Gold Corp.:
Alacer Gold Corp.:
Klondex Mines Ltd.:
OceanaGold Corp.:
Royal Gold, Inc.:
Sandstorm Gold Ltd.:
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