Monday, March 6, 2017

Gold Miners Try to Find Support on Thin Ice

Gold miners are trying to find support at the 61.8% Fibonacci retracement.

Fibonacci retracements are common support levels/targets that market technicians watch. There are lot of reasons why, I won't go into depth here. In any case, buyers are showing up at the 61.8% Fib retracement of the big move from December to February.

Maybe this support will hold, maybe it won't.

Investors should watch gold itself -- it closed today at $1,225.50. Now, $1,220 is support. If that breaks, and I think that could happen for seasonal and psychological reasons, then we'll see a test of support at $1,200. 

If such a test lined up with normal March madness selling of gold, that might be a buying opportunity. and where will gold miners trade then?

Longer term, things look great. This short term weakness is providing opportunity in some excellent miners, streamers, developers and explorers I am talking to at PDAC.

Good luck and good trades.

No comments:

Post a Comment