- "The bottom line is that several factors, including chart patterns, sentiment and momentum indicators show signs of life for both (precious) metals and metals mining stocks," writes technician Michael Kahn.
- He notes the GLD - bottoming last month at about the same level as it did in June ($115, or $1,180 per ounce for gold) - is beginning to form a double-bottom chart pattern, though there remains a ways to go before this would be confirmed. The iShares Silver Trust (SLV) is showing a similar formation.
- The GDX is notable for a bullish divergence in which the relative strength index rises even as the price action makes lower lows - "the first sign that the bears have lost their power."
- "Resilience last week in the face of a rallying U.S. dollar shows that there were forces supporting gold other than simple currency factors."
- Gold and silver ETFs: GLD, SLV, IAU, AGQ, PHYS, SIVR, USLV, ZSL, SGOL, UGL, DGP, GLL, DZZ, UGLD, DGL, DSLV, DBS, DGZ, AGOL, GLDI, DGLD, SLVO, TBAR, USV, UBG
- Gold miner ETFs: GDX, GDXJ, NUGT, DUST, GLDX, RING, GGGG, JNUG, PSAU, JDST
Technician sees bottoming action in precious metals
Jan 7 2014, 11:30 ET