I was wondering if we might launch today, Wednesday. It didn’t happen. Metals rose a bit, and so did most of our miners, but we didn’t breakout today. That being the case, I would expect it was more consolidation action, where price moved little, and volume would not be extraordinary, but perhaps be no more than around the average… so, let me see what the charts are looking like.
First, are those that moved up little in price, on low to average, or only slightly more than average volume, as KGC, FSM, AGI, NGD, CDE, ABX, RGLD, SGDM, SLW, AU, GDX and GLD.
Others moved up on expanding volume, like HL, AG, EXK and SLV.
Even those that declined a bit, but on insignificant volume, like PAAS, AUY, IAG, RIC and SA.
That the vast majority made small price moves, up or down, on no extraordinary volume, confirms the diagnosis that today was another consolidation day… even though some did close at new highs.
When the metals make a significant price move, the miners are going to breakout on big volume, but for now, they are consolidating the last big move.
Will the metals prices breakdown? Only if the $USD should make a significant move up. I’ll get back with a Thursday morning update later…
If it wasn’t Wednesday, it sure might be today… Gold is up more than $11.00 overnight, as of almost 7 am EST. If this holds, it’s likely to be one very profitable day!
Here’s to the accumulation of real wealth!
Harold F Crowell