TheDailyGold: Numerous Positive Divergences in Precious Metals

Published: Wed, 11/02/22

The Daily Gold
Jordan Roy-Byrne, CMT, MFTA


Wednesday, November 2, 2022


Good Morning!

The technicals of Gold do not look great but quite a few positive divergences in the sector continue to persist.

I wrote this article last week but it remains relevant.

Positive Divergences Abound in Precious Metals

Friday I interviewed one of my favorites Vince Lanci.

He discussed what is happening in the Silver market and why he's growing more and more confident and bullish in Gold & Silver's long-term prospects.

This interview is long but I divided the player into chapters/sections. Be sure to click around. 

Click Here for the Interview

The stock market continues to follow elements of my bear market template.

The next 2 to 4 months will be critical. There are major downside risks next year if there is going to be a recession starting in Q1 or Q2. 

Click Here for Video Analysis


Here is the weekly bar chart of GDXJ.

Just before the recent low at $26, various breadth indicators showed GDXJ at perhaps its most oversold point since 2015.

Aside from the false breakdown in January 2016, one could say the 2016 and 2018 lows developed after several months of building a base. Perhaps that is what GDXJ (and HUI, GDX, etc) will do now. 


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In TDG #802, I added two exploration companies to my watch list.

Jurisdictional risk is becoming far more important than it was over the previous decades. That along with cost inflation has created a difficult situation for quite a few juniors.

In terms of exploration juniors, we want to look for companies with cash, working in a top jurisdiction and have a chance at finding high margin deposits.

One of these companies is in arguably the best jurisdiction while the other is in a jurisdiction that has a chance of becoming a major gold camp. The majors are sniffing around there. Both companies have over $10 Million in cash and are trading near their lows. 




Thanks for reading. I wish you all great health and prosperity.


Disclaimer: This newsletter is intended for informational and educational purposes only and should not be considered personalized and individualized investment advice. Investment in the precious metals sector contains significant risks. You should consult with an investment advisor and do your own due diligence before making any investment decisions. This email may contain certain forward looking statements which are subject to risks, uncertainties and a multitude of factors that can cause results and outcomes to differ materially from those discussed herein.  


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