6 charts to watch in the PM space

Miners

I started this blog in early Dec with a couple bullish posts on the gold space. Things were going well until the end of the first week of Jan, when SGDJ (Sprott Junior Gold Miners ETF) failed to hold the breakout above the $49 level. Then in mid Feb, SGDJ also broke below $42, the lower bound of its trading range. Recently, however, it’s reclaimed that $42 as new support. Green shoots.

The recent rebound began right after GDM (the underlying index for the popular GDX ETF) hit 8-year support.

Another PM mining index I like to look at is the lesser-known XAU (Philadelphia Gold & Silver Miners Index). Here it is in an 8-month range just like SGDJ.

For me to get involved with the miners, I’d like to see a breakout in XAU or SGDJ. However, there is a precious metal I’m currently excited about…

Metals

Take a look at Palladium. It’s making a major 8-month breakout!

Silver is not as strong, and needs to show a breakout above $28.50 for me to be interested.

Of the precious metals, Gold has been the weakest link. This chart doesn’t interest me at all.

It’s no surprise that Commercial Hedgers (often considered ‘smart money’) are most bullish on Palladium based on their positioning in precious metals futures.

I picked up some shares in the PALL ETF already, and will add the miners when we get breakouts. Keep it simple!


Important DisclaimerThis blog is for educational purposes only. I am not a financial advisor and nothing I post is investment advice. The securities I discuss are considered highly risky so do your own due diligence.