Gold is starting to rise in price again which I've been expecting with the recent global economic landscape of trade wars and tariffs. AU is in a good position of having solid growth coupled with relatively cheap stock price with significant upside potential. It's outperforming GDX and SPX and all technicals look good for a rally over the next week. Volume has steadily risen over the past week, and I foresee it spiking hard the coming days.
MACD just broke positive with a strongly rising histogram showing an accelerating momentum. RSI broke and held 50 at close for two trading days but isn't overbought yet. Looking at trendedness has ADX just breaking over 20 for a weak trend, but DI+ rising sharply over DI- shows that the forming trend is accelerating quickly. The 50 day momentum for holders sentiment still shows negative but is steadily climbing, so it looks like long term holders will go overweight soon, too. Chaikin money flow just broke positive, so it looks like institutional investors are looking to the gold mining industry in pursuit of alpha against the market headwinds.
I'm entirely out of DOW30 and S&P500 stocks at this time, and I'm looking at mostly bond funds and very specific, niche small and mid cap investments at this time. I'll continue to ride AU as long as the forming trend holds out and I remain profitable in the position, and I did well to capture some of Friday's gain by purchasing early in the trading day.
MACD just broke positive with a strongly rising histogram showing an accelerating momentum. RSI broke and held 50 at close for two trading days but isn't overbought yet. Looking at trendedness has ADX just breaking over 20 for a weak trend, but DI+ rising sharply over DI- shows that the forming trend is accelerating quickly. The 50 day momentum for holders sentiment still shows negative but is steadily climbing, so it looks like long term holders will go overweight soon, too. Chaikin money flow just broke positive, so it looks like institutional investors are looking to the gold mining industry in pursuit of alpha against the market headwinds.
I'm entirely out of DOW30 and S&P500 stocks at this time, and I'm looking at mostly bond funds and very specific, niche small and mid cap investments at this time. I'll continue to ride AU as long as the forming trend holds out and I remain profitable in the position, and I did well to capture some of Friday's gain by purchasing early in the trading day.
Trade closed: stop reached:
I put a pretty tight stop in a couple of days ago that got hit at the open of the week. We may see a cup and handle forming in a week or three, but will have to get a gauge of the background indexes at the time to have a better feel for whether it's a false rally on gold or not.
