Monday 31 December 2018

A year of chop for the miners

The gold miner ETF of GDX ended the month on a strong note, settling +2.4% at $21.09, which made for a net monthly gain of 11.1%, but that still made for an annual decline of -8.8%. The December settlement back in the $21s bodes bullish, at least in the s/t.

GDX monthly

GDX, daily


A third consecutive net monthly gain, with GDX back above old support of the $21s. Its a 'curious' year end settlement, after what has mostly been a year of broad chop. Things would turn outright m/t bullish with any monthly settlement >25.00. That is still a considerable 19% higher.

Lets take a look at two of the biggest miners...

Barrick Gold (ABX)

A fourth consecutive net monthly gain, settling right around the upper trend. Any price action above the December high of $14.11 would bode for psy'20, and key price threshold of $21.50s.

Special note: Barrick Gold will be relisted as of Wednesday Jan'2nd 2019, having merged with Randgold Resources (GOLD). To be clear, the new name/ticker will be: Barrick Gold (GOLD) on the NYSE, whilst on the Canadian exchange, the ticker will remain ABX.

Newmont Mining (NEM)

A third consecutive month higher, settling just fractionally shy of the key 10MA. Note trend resistance in the $39s. Things turn decisive >40.00.
The more cautious will wait to chase any of the miners until Gold has a break above the multi-year trading range of 1072/1392. To be decisive, >1400s.