#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).

 

#Uranium: Technical Analysis of Uranium Sector: Seeing Signs of Bullish Shift in Trend

Uranium Participation Corp: Signs of a Potential Shift in Trend

 

 

 

Cameco Corp.: Attempting Downtrend Breakout

 

 

 

NexGen Energy Ltd.: Consolidating Breakout

 

 

 

Denison Mines Corp.: Carving Out Basing Pattern  

 

Chart 1 – Uranium Participation Corp is starting to show signs of a potential shift in trend as price action breaks out from a yearlong downtrend. The breakout confirms the bullish divergence in momentum indicators and is backed by a breakout in RSI. It is important to note, however, that price remains below a falling 40-week moving average. We need to see the weekly moving averages start to flatten out and turn higher along with a break above the 40-wma in order to confirm the start of a major shift in trend.

 

Chart 2 – Cameco Corp. is positioning for a major breakout from a ten quarter downtrend as weekly RSI breaks out to 32 month highs on a new MACD buy signal. A weekly close above $10.75 will confirm the major trend reversal and position CCJ for a rally to $14.00.

 

Chart 3 - NexGen Energy Ltd is leading Uranium stocks as price action breaks out from a 6 month downtrend, 200-day moving average and reclaims the neckline of the April to September topping pattern. The breakout confirms the bullish divergence in momentum indicators and positions NXE for a rally to new highs. In the near-term, however, momentum indicators are overbought suggesting a period of consolidation is needed to workoff overbought pressure. We would look to add on weakness and a reset in momentum indicators.

 

Chart 4 – Denison Mines has broken out from a nearly 3 year downtrend as price action continues to carve out a 6 quarter double bottom with the neckline at $0.85.  Weekly momentum indicators continue to show signs of strength suggesting we should see an upside resolution to the current basing pattern. A breakout above $0.85 will confirm a bullish shift in trend that measures to a technical target of $1.30.

#Gold - Heavy selling in precious metals futures contracts over the last 24 hours

The attached chart shows the massive seller (s)  used the FED interest rate hike to do further damage in the precious metals market.

 

Through the futures market, in the last 24 hours, the value of US$ 10 Bio. in precious metals futures contracts were dumped into the market.