#GOLD - $GLD $DUST Correction may be on the way as #MACD turning

Attached is the gold chart on continuous futures contracts (attachment 1). As can be seen the MACD, which hasn't been as high since September 2016 is turning down. The Point&Figure chart (attachment 2) shows that the gold rally stopped exactly at the resistance level around US$ 1,210 per ounce.

Attachment 3 is the HUI (Gold Bugs Index), which reflects a portfolio of gold stocks. As per Gold Barometers, which we published on Monday, gold stocks were 100% overbought. Here also the MACD is turning down. 

To protect your gold shares holding you might buy DUST (US$) 34.82 Direxion Daily Gold Miners Index (3X bear). This is a highly leveraged vehicle and extremely volatile. If the share price of gold stocks are going down, the price of DUST is rising. As attachment 4 reveals DUST reached a top in December 2016 at around US$ 70 per share and declined to around US$ 30 a few days ago as gold stock were rallying. The MACD is just about crossing the red line, a bullish sign for DUST.  

 

BUY #Uranium: Volume and Momentum Thrust Confirm Bullish Shift.

From Paradigm Capital: 

The Uranium industry is undergoing a bullish shift in trend characterised by a breakout from multi-year downtrends on a thrust in momentum and volume. Yesterday, the Global X Uranium ETF (URA) had its highest volume day in history, eclipsing even the volume seen on the day of the Fukushima disaster. The high volume selloff in 2011 marked a major negative turning point for the sector and we believe the bullish thrust in momentum represents the same shift in trend to the upside.

 

 

Chart 1 – The second week of January saw the Global X Uranium ETF (URA) breakout from a six year downtrend and 1.5 year basing pattern on the highest volume week since the ETF's inception. The resulting pullback occurred on significantly lower volume followed by a reversal higher yesterday on the highest volume day in history. Combined with the momentum thrust to all time highs we view the current breakout as a major shift in trend. As such we recommend accumulating an overweight position in Uranium stocks.

 

Chart 2 – Cameco Corp. has broken above a major level of resistance along the bottom of the 2011 to 2016 trading range and 2014 downtrend. The breakout occurred on heavy volume and a breakout in RSI and MACD to multi-year highs. We view the current pullback as an opportunity to accumulate a position as we continue to see conservative upside back to $20.00.

 

Chart 3 – Denison Mines Corp. is breaking out from a three year downtrend and six quarter basing pattern on volume. Price action likely needs to consolidate the breakout in the near-term but we view any pullbacks as an opportunity to accumulate shares in the early stages of a bullish shift in trend.

 

Chart 4 – The 2016 lows in Fission Uranium were not confirmed by momentum indicators with both RSI and MACD making significantly higher lows. Now price action is breaking above the 2014 downtrend and 1.5 year double bottom on volume and momentum confirming the bullish divergence in momentum. We recommend accumulating any near-term weakness with upside measuring back toward the $1.30 to $1.40 level.

 

Chart 5 – NexGen Energy remains the leader among the Uranium stocks. After a 2/3^rd retracement of the 2016 advance, NXE reversed high from oversold levels and has since broken out to all time highs. While momentum is extended, shares in an uptrend can remain overbought for long periods of time and we continue to recommend letting your winners ride.

 

 

 

Global Uranium ETF: Early Stages of a Major Shift in Trend

 

 

 

 

Cameco Corp.: Reclaiming Multi-Year Resistance Level on Volume

 

 

 

 

Denison Mines Corp.: Breakout on Thrust in Volume and Momentum

 

 

 

 

Fission Uranium Corp.: Breakout Confirms Bullish Divergence

 

 

 

 

NexGen Energy Ltd.: Breaking Out to All Time Highs

 

 

 

 

Sticking With Leadership #Gold Names: $IMG, $BTO, $EDV, $MUX

From Paradigm capital:

Sticking With Leadership Gold Names: IMG, BTO, EDV, MUX

Ø  As we noted yesterday, shares of junior gold companies are leading their senior counterparts as the Junior Gold Miners ETF (GDXJ) breaks out versus the Gold Miners ETF (GDX).  

Ø  Today we highlight four of our favourite Canadian junior gold leaders: IAMGold, B2Gold, Endeavour Mining, and McEwen Mining.

Ø  The common technical characteristics of the highlighted names include price action above the 200-day moving average, breakouts above their August downtrends, and relative uptrends versus the Equal Weight Global Gold Index (ZGD).

IAMGold Corp.:

#Gold #Silver #ETF's - Finally some buying comes back $GLD $SLV

Total Global Gold ETFs were UP 41kozs Friday to 57.015Mozs.  …. Global Silver ETFs were UP 116kozs Friday to 652.4Mozs.

Attached are ETF gold redemptions since the election in the U.S. Up to January 4, 2017, every single day saw gold redemptions (attachment 1).

 

Below is the chart as of January 6th, 2017 (last Friday). Finally some buying occured for the first time on January 4, 2017. This was the first buying since November 9, 2016, and the chart is flatten out in gold and silver.

 

Total Global Gold ETFs were UP 41kozs Friday to 57.015Mozs.  …. Global Silver ETFs were UP 116kozs Friday to 652.4Mozs.

Source: Bloomberg

 

 

#Gold & #Silver: How does it look from here? $GLD $SLV, $HUI, $XAU

Large speculators as well as net commercial gold dealers slightly reduced positions. However the open interest starts to increase. (Attachment 1)

 

The Gold Barometers (Attachment 2) indicate that gold shares (GDM, HUI and XAU) are now in overbought territory. Shares of precious metals companies have vastly outperform last week the physical gold and silver price, which is in a neutral position.

 

KITCO Gold Survey reveals that Wall Street and Retail investors are in a bullish camp for next week (attachment 3).

 

The hourly gold chart (attachment 4) shows that gold had a good week closing at US$ 1,172 per ounce at 4 pm New York time last Friday for a  weekly gain of US$ 22 per ounce or 1.9%.

 

As concerns silver large speculators and net commercial dealers slightly increased their positions. These positions are historically very large. The open interest is low (attachment 5).

 

The hourly silver chart shows the nice rally on January 3rd, once the traders were back. For the rest of the week silver digested that rally (attachment 6).

 

We added a daily gold chart for the last 2 years to better understand where we stand with the current rally (attachment 7). As can be seen there is strong resistance around US$ 1,220 per ounce. The 300-day moving average is currently also at that level. The Point&Figure chart also indicates the resistance at US$ 1,210 per ounce (attachment 8).