{"id":11650,"date":"2018-10-12T07:30:02","date_gmt":"2018-10-12T11:30:02","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=11650"},"modified":"2018-10-12T07:30:02","modified_gmt":"2018-10-12T11:30:02","slug":"more-upside-for-the-gold-sector","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/more-upside-for-the-gold-sector\/","title":{"rendered":"More Upside for the Gold Sector"},"content":{"rendered":"

It took a crashing stock market to do the trick. But, buyers finally stepped into the gold sector yesterday.<\/p>\n

Gold blasted higher by $30 per ounce. That was its largest daily gain in over two years. Gold stocks, as represented by the VanEck Vectors Gold Miners Fund (GDX), gained more than 6%.<\/p>\n

Now… I’m not at all crowing about being in the gold sector ahead of this move. I’ve been bullish on gold stocks for the past few months – during a horrible decline. So, yesterday’s move merely brushed a few of the cockroaches away from my decaying gold stock portfolio.<\/p>\n

But, I did point out the potential for a strong, two-week long rally in the gold sector in a Market Minute<\/em> essay last week<\/a>. Back then, the chart of GDX was morphing into a potentially bullish inverse head and shoulders (H&S) pattern. If it played out, that pattern projected a short-term target of $20.50 per share on GDX.<\/p>\n

Well… yesterday’s action took a big step towards hitting that target. Here’s the updated chart…<\/p>\n

\"image\"<\/p>\n

It’s not the most traditional inverse H&S pattern, but yesterday’s action did pop GDX above the neckline at about $19.10. It also pushed GDX above its 50-day moving average<\/a> line (the blue line). So, the intermediate-term trend has now shifted to bullish.<\/p>\n

Neither the MACD<\/a> nor RSI<\/a> momentum indicators at the bottom of the chart have stretched into overbought territory yet. So, there’s room for GDX to press even higher towards our $20.50 target before hitting resistance. I suspect GDX will hit that target in the days ahead.<\/p>\n

More important, though, is this inverse head and shoulders pattern often reverses the intermediate-term trend for a stock from bearish to bullish. GDX is now trading above its 50-day moving average line. As long as it stays above that line, then we can expect gold stocks to press even higher.<\/p>\n

There will be pullbacks in this intermediate-term rally, for sure. But, traders should use any pullbacks towards the 50-day MA as a chance to increase exposure to the gold sector.<\/p>\n

Best regards and good trading,<\/p>\n

<\/p>\n

Jeff Clark<\/p>\n

Reader Mailbag<\/h2>\n

In today’s mailbag, one Delta Report<\/em> subscriber thanks Jeff for his timely Delta Direct<\/em> updates… <\/p>\n

\n

Thanks Jeff, for your guidance and all of the great updates on the blog over the past few days! I just wanted you to know how much I appreciate it and rely on you every day to become a better trader. Thanks for the chart of GDX today, and like you, I shall say no more! <\/p>\n

– Ryan<\/strong><\/p>\n<\/blockquote>\n

\n

And another reader has a short and sweet response to yesterday’s Market Minute<\/em>…<\/u><\/a><\/p>\n

GREAT CALL!!<\/p>\n

– David<\/strong><\/p>\n<\/blockquote>\n

Are you increasing your exposure to gold? Or are you staying away from the sector? And as always, send in any other trading questions, stories, or suggestions right here<\/a>…<\/p>\n

And Delta Report<\/em> subscribers can access Jeff’s Delta Direct<\/em> blog, anytime, right here.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

It took a crashing stock market to do the trick. But, buyers finally stepped into the gold sector yesterday.<\/p>\n","protected":false},"author":28,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-11650","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/11650","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/28"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=11650"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/11650\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=11650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=11650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=11650"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=11650"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=11650"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=11650"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=11650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}