RE:Gold stocks are breaking outHa! Was hesitant to call a confirmed PM breakout when looking at nearest silver and gold futures (as per recent post) as the downtrend line was broken to the upside but most recent 52 week highs not taken out.
Premier gold stock ETF's though (GDX majors and GDXJ juniors) have both broken up through recent 52 week highs AND MULTI -YEAR downtrend lines.
Have the PM stocks taken over upside leadership from the PM's? Kinda looks that way, but what an extra boost this move would get with the PM's themselves confirming their recent breakout by taking out recent new 52 week highs.
Adam Hamilton , in his recent article just posted on here by user "karead", uses this metric as a confirmed breakout in his recent letter:
..............."a decisive breakout happens when a past high is exceeded by 1%. That works out to $37.63 on GDX."........
So by AH's metric , both GDX and GDXJ have just confirmed recent breakouts. Not so the PM's themselves though (Au and Ag), as they have broken out to the upside of recent downtrend lines but have not taken out most recent highs. Would positively love to see that happen next week - what a convergence of upside indicators that would be! look out above if it all comes together!!!
BG