Precious Metals Take A Hit!

There was some damage to our precious metals stocks and so I’m revisiting my comments on Randgold Resources (GOLD).

On July 20th I said that looking over Dan’s shorts, the only one where I had any problem was GOLD. I was bullish on the metal and silver and thought the monthly, weekly and daily charts all looked bullish. I said, “Now here’s where it gets interesting. GOLD is right at the down-sloping trendline on the daily chart, but the commodity has given a weekly buy signal today and GOLD will too, if the stock trades over $67.73, which by the way would break the down-sloping trendline. I don’t think it is a time to be short the precious metal stocks, but I’m a Gold Bug and I’m positioned on the long side. Stay tuned!”

Shortly, the stock broke the down-sloping trendline (that’s bullish), but for six straight sessions the stock churned under $67.73. We never got the weekly green BUY and today Trade Triangles delivered a daily SELL on a gap down. The stock has pulled back to the down-sloping trendline and even could be working above major support, on a reverse head and shoulders,

Dan’s short is in great shape and I’m still waiting for the green light. Expectations and anticipating have always been my weaknesses!

While we’re on Precious Metals stocks, let’s look at COEUR D ALENE CP NEW (CDE).

I looked at it early this morning and thought if it broke the up-sloping trendline, I should get out of some of it.  It gapped down and I calculated the risk was down to $12.6, which would retrace 38.2% of the mo0st recent gain.  I watched it at that level, it even broke it slightly and then came charging back.  I think the first trendline was too steep and the lower one is better.  The last candlestick looks like sellers loaded up on the pullback.  The negative is the daily went red!

Full Disclosure: I am long this stock.

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