Gold And Silver Jump On Bullish Price Action

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Metals had a healthy day, as did other natural resource ETFs. I’ve highlighted notable ETFs right from our DecisionPoint ETF Tracker Report found in the DP Tracker Blog. This displays only a small portion of the ETFs we cover in the Tracker Report and only the section that sorts by the day’s percentage change. I’ve selected some of the charts for analysis.

etfs_performance_November_2014

Let’s look at the Gold ETF, GLD. What dominates this chart is a bearish reverse flag formation. However, rather than executing with a breakdown below the flag, it broke out above the flag. When you see a bullish outcome to a bearish technical pattern it is a sign of positive momentum. This is confirmed by the Price Momentum Oscillator (PMO) which bottomed. A PMO bottom in oversold territory is generally a good set up.

GLD_Price_chart_14_november_2014

The Silver iShares ETF, SLV looks very similar to GLD. There is a reverse flag which is considered bearish, but instead of breaking down, price broke out. The PMO is very close to a positive crossover its 10-EMA which would generate a PMO Crossover BUY signal.

SLV_Price_chart_14_november_2014

The Gold Miners ETF is sending us mixed messages. On the one hand there is a bearish reverse flag formation while on the other hand, the PMO just crossed over its EMA generating a PMO BUY signal.

GDX_Price_chart_14_november_2014

 

I encourage you to go to our DP ETF Tracker, find an ETF on a line of the report that interests you and click on it. The chart will come up and you can analyze and annotate it just as I did above. To access the reportyou do need to be a StockCharts.com member.

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