Some Gold Stocks Consolidating

Gold has been on a tear as the Fed is now printing the Dollar into oblivion. However, while Gold has gone parabolic, many Gold stocks have not followed.

Barrick Gold (ABX) has just broken out of an 11-month base. Harmony Gold (HMY) is trying to do the same.



The “Junior” Gold and Silver stocks have been performing much better than their larger counterparts. Some of this have been the result of M&A activity and some is the result of the larger companies using hedges for future deliveries. As you can see, a lot of the Juniors have stalled out over the past few weeks (similar to the NASDAQ 100).

These are the setups you want to see in leading areas – narrow trading ranges in an uptrend. If prices fail here (like they did in a lot of leading NASDAQ names last week), then I will look for support near the 50-day averages (Black Lines).