{"id":21006,"date":"2023-06-27T07:30:30","date_gmt":"2023-06-27T11:30:30","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=21006"},"modified":"2023-06-27T07:30:30","modified_gmt":"2023-06-27T11:30:30","slug":"weakness-ahead-for-the-gold-stocks","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/weakness-ahead-for-the-gold-stocks\/","title":{"rendered":"Weakness Ahead for the Gold Stocks"},"content":{"rendered":"

It’s time to get back into the gold sector.<\/p>\n

The Gold Bugs Index (HUI) has fallen 17% over the past seven weeks. The sector is now oversold.<\/p>\n

It’s trading back down to where it was at the start of the year.<\/p>\n

And, the chart pattern resembles the same setup HUI had in March – just before the index spiked 30% higher in just over one month.<\/p>\n

Take a look…<\/p>\n

<\/p>\n

\"Image\"<\/p>\n

HUI recently made a lower low by falling below its lowest closing price in May.<\/p>\n

Meanwhile, all of the technical momentum indicators at the bottom of the chart have been rising during the recent decline in the gold sector.<\/p>\n

This “positive divergence” usually occurs near the end of a decline phase and is often an early warning sign of an impending rally.<\/p>\n

This action isn’t an exact match, but it is similar to how HUI behaved in early March, just before the gold sector blasted 30% higher.<\/p>\n

<\/p>\n

\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Larry’s free trading resources on his website? It contains a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n

<\/p>\n

There’s no guarantee we’ll see the same sort of pattern play out this time around. But, the chart looks promising enough to justify adding some exposure to the gold sector.<\/p>\n

When we looked at the gold stocks two weeks ago<\/a>, we noticed the Bullish Percent Index for the sector (BPGDM) had declined. But, it still needed to work a bit lower before it was “safe” to venture back into the gold sector.<\/p>\n

Readers who have been paying attention may have noticed the BPGDM has fallen to 43.<\/p>\n

That’s not oversold enough to justify going “all in” with the gold stocks. But, it is at levels that justify taking some starter positions.<\/p>\n

Traders should look to buy into gold stocks on any weakness in the coming days.<\/p>\n

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

\"Signature\"<\/p>\n

Jeff Clark<\/p>\n

<\/p>\n

\n

READER MAILBAG<\/h2>\n<\/div>\n

Are there any gold stocks on your radar?<\/p>\n

Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com<\/a>.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

It\u2019s time to get back into the gold sector.<\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"closed","ping_status":"closed","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-21006","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\/21006","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\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=21006"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21006\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=21006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=21006"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=21006"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=21006"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=21006"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=21006"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=21006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}