Only a monkey would tell you that gold stocks only go up. Since August of 2020 the gold mining stocks have been in a serious downtrend. A downtrend that could be classified as a "consolidation" from last years BULLISH rise.
However, the mining shares have reached a critical juncture!
Below is a chart of the HUI index, that is comprised of large un-hedged Gold Mining Companies.
On Friday and Monday, the HUI closed below what I have marked as the "final line of defense" for the gold mining companies IF this is to remain a "consolidation".
Today the mining shares did bounce back but only to the point of the last break downward in price.
Below is the weekly chart of the HUI showing the action of the rise up from mid-June to the August High in 2020.
Folks we are there, a hard break below 252.43 and then the next target area is 232.62. In order to change this relentless downtrend the HUI Index needs to take out the prior HIGHS in the 276 area AND any pull back from there can not take out Monday's LOW of 247.99.
Gold is still in a downtrend.
Like the Miners, gold has been in a downtrend since last August. The Futures price did manage to close inside the Bollinger bands and is over sold BUT each prior occasion gold has only managed to rally to the 18 day moving average before selling off.
Silver remains the one truly "shining" spot in the precious metals.
The weekly chart really shows how much stronger Silver is compared to Gold and the Mining Shares.
Peace out and Stack on!