Tuesday, 1 March 2022

Miners resilient to the main market

The gold miner ETF of GDX saw a net February gain of +$4.15 (13.7%) to $34.38.

GDX, monthly



The miners rebounded strongly in February, spiking to $36.06, if cooling back to settle powerfully higher at $34.38. The miners were notably resilient to the weak main market. We have a marginal break above m/t declining trend. I would note the 10MA at $32.65, which was decisively settled above. Soft target 39/40s.

Three of the key miners...

Newmont (NEM), monthly


Newmont broadly climbed with the sector, with a net February gain of +$5.03 (8.2%) to $66.20. I would note the monthly 10MA in the $60s, which was again settled above. Monthly momentum will be prone to turning positive in March/April.

Barrick Gold (GOLD), monthly


Barrick Gold climbed for a fifth consecutive month, settling +$3.50 (18.4%) to $22.57. Momentum is due to turn positive within March/early April. Next target are the $25s, and then psy' $30. A push above the Aug'2020 high of $30.47 will likely require Gold at least >$2100.

First Majestic Silver (AG), monthly


First Majestic saw a net February gain of +$1.08 (10.6%) to $11.24. Still a m/t mess, things turn interesting above the 10MA, currently at $12.86, and decisive >15s.

Of the three, yours truly currently favours GOLD.
As of Feb'28th 2022, I hold long via NEM, GOLD (via options) and AG.

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