Thursday, February 03, 2011

Precious metal Review

We've had a few posts on precious metals, especially when they were crashing: precious metal support  and gold support . 

We wanted to review a host of precious metals that we follow.  As we're written in this blog and in our newsletter for years now -- for us gold is meant to be bought at support and not at breakouts (as opposed to tech for example).  

ABX held on the 200 SMA and can be bought on any pullback with stop on 200 SMA break.  First target is the 50SMA.

 As we posted real-time on StockTwits today we entered AEM swing at 69.77.  We think it can do 74.  Our stop now has been moved to break of 71.

 ANV fantastic price action -- note how buyers never even let it hit the 200 SMA and it's nearing new highs.  Too extended for us but we'll definitely pay attention on the next support cycle.

 BVN went through the 200 SMA but held on the longer time-frame ascending trendline .   Today it broke up through descending trend-line and looks good to go to at least the 50SMA.

 Our mistake in silver stocks was wanting too deep a pull-back.  Buyers snapped these up before our support got hit.   Note how 100 SMA held on CDE ( we wanted 21).

 EGO held right on support. 

 We would have picked up EXK aggressively on the 200 SMA but alas the daily support held -- very nice bounce and through the 50SMA.  Too extended for us -- we'll have to wait on this one.

 GDX went through on daily 200 SMA, and not much of a pattern here but...

As you can see, perfect weekly bounce on the 50SMA.  Very nice follow through and we bet there are many stops under that 50SMA.  That's the line in sand for gold position traders. 

GDXJ very clean hammer on the 200 SMA -- acts even better than GDX and has our full attention. Today it broke the trend-line and looks like an easy trip to at least the 50SMA above. 

 GLD undercut support and now has stopped at the 100SMA -- we were too cheap here wanting just a few more points downside before getting in and missed the boat.

 Through trend-line today and looks good to go for 50SMA visit.

 HL very nice clean bounce on support and 100 SMA.   The 50SMA above now will most likely slow down this bounce.

IAG very impressive chart here -- big break of trend-line on weekly.   Very impressive.

 Another impressive name here in the sector -- note how strong the stock held as the sector was hit in early Jan.  

 For the most part silver held support much better than gold -- MVG's 100 SMA was like a wall, now taking off.  Should see 50SMA easily.

 Our least favorite stock in the sector due to how messy/edgeless it is but worth watching because it's a significant portion of GDX.

 NG through trend-line with no problem today.  Nice clean chart.

 PAAS didn't hit our 200SMA level and instead bounced on daily support. Today paused at 20SMA.

 We dislike RGLD probably as much as NEM.   Messy chart, no clean edge.

 SIL is good to watch as silver miners ETF.    Held daily support -- and big bounce but watch for it to at least pause at the 50SMA.

Held daily support and didn't make it to our deeper 24.5 number -- very loved sector.  Through the 50SMA today and looks like it wants more.   We're seeing a lot more momentum and love in silver than in gold.  

Our favorite stock in the precious metal sector -- bounced on daily support and now heading to the 50SMA. 

SSRI also held support and didn't make it to the 200 SMA -- for the most part there were too many buyers like us who were waiting for support triggers and when that happens often the stock reverses just short of the level you're stalking.  It also is evidence of how liked the sector still is among traders.

Bounced on daily support but now should at least pause at 50SMA.  Too extended for us to get involved but great price-action off the bottom and one we'll definitely watch in the near future.