Next Leg Up In Gold & Silver Stocks

Next Leg Up In Gold & Silver Stocks

hello everyone this is Jordan this video is being recorded on the afternoon of Friday May 10th 2024 thank you so much for tuning in hope you all had a great week and in this video we’re going to wrap up the week and talk about how gold and silver stocks are outperforming gold and silver and they’re hinting at what could be coming over the weeks and months ahead and that is the next leg up for this sector after that huge breakout we had in March so let’s get right into it so starting off we have the GDX Advanced decline line that is here at the bottom GDX is at the top so these are only closing prices and if you don’t know the advanced decline line is a trusty leading indicator for the overall stock market the advanced decline line people follow that you can follow it for any index or any basket of stocks any sector and what the advanced decline line measures is essentially how many of the stocks within that group are rising or falling and then when you see it charted it’s really a cumulative measurement so you’re doing it daily and then there’s a cumulative measurement and that’s what we see right here for GDX and typically when a market is rising and it it starts to fade and it looks toppy then you’ll see the advanced decline line will weaken it’ll warn of that and vice versa and so here’s an example of that right now where uh this is something I noticed in particular after Wednesday I mean after Wednesday the GDX Advanced decline line was right here it had already broken above this April Peak whereas GDX was right here so GDX was a little bit below its April Peak yet the advanced decline line had already clearly broken above it and this is something I noted in the video Last Friday was that the advanced decline line was starting to show positive Divergence so we can see it now you can see it from the the highlights here how much stronger the advanced decline line has been compared to GDX and what this means is that there’s real strength in GDX the participation is strong this isn’t just being led by a couple stocks it’s this is signaling that even during this correction fewer not that many stocks were going down and so now we see as GDX has closed at a higher high well it did yesterday we see how GD we see how the advanced decline line already did that a couple days ago so that’s a good sign and then if we’re just looking at Price we know that the miners have been leading the medals so the miners today they were down a tiny bit but if you look at Thursday’s close Thursday’s close in in all these GDX gdxj SJ the the daily close on Thursday was higher than the highest close in April for all three of these ETFs now this chart this is a bar chart so we’re looking at intraday prices and we can see I’ll just focus on on GDX here we can see that this is a bullish correction this is textbook bullish action people strong rise here this was a bull flag I noted that in my premium updates another strong rise here this is bullish action because the market is consolidating and digesting this run right here it’s doing it bullishly and if we carefully look you can see GDX you know kind of tested tested support there tested support again then you had this little weakness here you really have to zoom in to see it but that’s 1 2 3 and then after that now we can see GDX is pulling away it’s attacking this resistance and so even if GDX and the miners were to sell off and go like this the next couple weeks it’s still setting up for a move like this so and I think I said this in recent days this is just bullish action across the board and so these red resistance lines I mean for GDX this is going to be the next Target same thing for gdxj again maybe they’ll consolidate more for a couple days or a week but the path of least resistance is higher and by the way we look at the metals gold isn’t even close to getting back to its April Peak it’s like $100 off of it now silver is a little closer but so there’s just there’s several examples here or at least bullet points as to you know as to confirm how the miners are leading the medals okay so let’s wrap this up looking at a couple of charts for the medals gold daily candle chart here silver daily candle chart now this is gold divided by silver so the gold silver ratio this is on the cusp of breaking down from this trend line now if you look at like a two or threee chart the trend line also comes in pretty close to what you’re seeing here and now so during this next run I think you you you’re going to see silver start to not only outperform gold but it could strongly outperform gold as you see silver get to that $34 Target now silver came down it came down to 20 630 it didn’t fill this Gap maybe it does in the next couple weeks or something I mean that’s possible but at this point this is a pretty good rebound off this support so I’d have to lean towards it’s not going to fill this Gap and so we can see there’s some resist daily resistance of 29 strong candle for silver so silver is you know close to this area far more so far more so compared to Gold where we can see this is kind of choppier action but interestingly this Gap at 2240 I’ve been talking about that and we have the 50-day here so this 50-day will keep moving like this so maybe gold will not fill this Gap at 2240 maybe it’ll just rally here and kind of go sideways before breaking out and maybe it tests the 50-day moving average again I’ve looked at the real bull moves in gold and I I noted in a video like even a year or two ago how when it corrects in a bull market and it’s running it’s it’s either the 50-day 100 day or 150 day in in in half of those instances it tends to be the 50-day so if gold I mean look for it to test the 50-day at some point and probably bounce yes gold needs some more time but this is just a really good setup and again the M the miners have already they already closed Above This level so that’s a great sign and uh let’s wrap things up with the weekly candle charts silver is the one that’s more interesting this weekly resistance I’m looking at about 29 now if you’re using clo only closing prices these two closes here and here were higher than all of these weekly closing prices but I’m looking at the looking at the the the black candles here and these tick marks so I’m drawing it here and this comes in you know make sense putting it right here because the highest weekly close here was just below 29 so call it 29 so weekly resistance at 2900 the previous resistance at 26 so this came down to 18 so that’s how you get the measured upside Target of 34 I don’t want to keep babbling on here I don’t want to make this video too long because I have to get ready for my presentation tomorrow by the way this video is being recorded in beautiful Vancouver British Columbia I think I forgot to say that in my intro but that’s all for this video I mean people it’s I don’t want to sound like a cheerleader or a perable here but I I expected a correction thought the market would hold up really well during the correction gold and silver in the mind they’re acting even better than I thought they would it you know in this correction that’s just telling us the path of least resistance is looking to be higher so you got to get positioned if you’re not in this sector yet cuz there’s not going to be any big Corrections coming at least not this year we’ll see maybe when silver gets to 34 gold to 2700 we’ll see we’ll follow all those indicators we’ll let you know but for here and now this is just a really bullish Market that is going to move higher over the weeks and months ahead it’s all for this video let me know what you think leave a comment say hello if you see my presentation tomorrow and I wish you all a great weekend and if I don’t see you tomorrow I’ll talk to you again next week

The miners continue to lead the metals as they start to break above their April highs while Gold & Silver remain below those highs. Silver is getting ready to outperform Gold.

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