Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

A Look at Junior Gold Producers

IMG Auteur
Published : December 16th, 2012
437 words - Reading time : 1 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...

 

 

 

 

GDX is our favored index or ETF for tracking the gold stocks but it only tracks the large cap unhedged companies. In the world of gold mining and exploration, there are several sub sectors below the largest producers which comprise GDX, the HUI and the XAU. In recent weeks we have charted GDX to death. We know the market has initial support at $46, secondary support at $43 and very strong support at $41. That being said, I wanted to check the junior producers to see if they gave us a different read on the market or if they are in a similar boat as the large producers.


Below is a chart from an equal-weighted index we put together. It contains 20 companies which are gold producers. The median market cap is $900M, which is quite large. For the most part, these are the junior producers who were successful from the 2008-2010 bull market. After all, if a junior producer is successful during a cycle, then it’s no longer a true junior!






The price action in 2012 is remarkably similar to that of GDX. The large gold stocks made a double bottom and then rebounded strongly. Like GDX, the junior producers have shed most of the gains and very well could test those two support levels. There is 10% downside to the first support level and 15% downside to the double bottom support level.


The 5% and 50% are breadth indicators (which we discussed last week). They refer to the percentage of the index (20 stocks) which is trading above its 200-day moving average. Currently, the 50% is quite high and shows strong breadth. Even if the index falls another 10%, breadth should remain comfortably higher than at the double bottom. This is what we expect at secondary lows following a major bottom.


Ultimately, this is still a very bullish long-term chart provided the market makes another low and resumes its fledgling cyclical bull market. In that case, in 2013 both large and junior producers will attempt to rally through the overhead resistance and retest the 2010-2011 highs. We could see the next major breakout at the end of 2013 or early 2014. Now is the time to be vigilant as large and junior producers are likely to bottom in the coming month. Speculators and investors are advised to carefully seek out the large or small companies which are poised for the best rebound. If you’d be interested in professional guidance in uncovering the producers and explorers poised for big gains then we invite you to learn more about our service.


Good Luck!


Jordan Roy-Byrne, CMT


Jordan@TheDailyGold.com


 

 

Data and Statistics for these countries : Jordan | All
Gold and Silver Prices for these countries : Jordan | All
<< Previous article
Rate :Average :0 (0 vote)
>> Next article
"Trendsman" is the proprietor of Trendsman Research, which provides financial and investment related research to private and public entities. Trendsman Research provides: a subscription based newsletter to individuals, personalized research to individuals and institutions and occasional reports available to the public. Trendsman is an affiliate member of the Market Technicians Association (MTA) and has successfully completed the CMT Program (awaiting certification) which certifies professionals in the field of technical analysis.
WebsiteSubscribe to his services
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Financial Repression Authority w...
03 Marovertheedge
"The US is only about 50% of global market cap but most US investors have a 'hometown bias" of having 70% of their portfolio in US securities. Fabe...
Bondholders “Bailed In” In Austr...
03 Marovertheedge
"“Bail-in is now the rule” as Irish finance Minister Michael Noonan warned in June 2013. Noonan admitted that the move to not maintain deposits as ...
Bondholders “Bailed In” In Austr...
03 MarArgus
Shortly after the Cyprus test run, Canada's budget document made provision for bail-ins in the event of significant 'systemic risk' to the banking ...
Illinois Pension Plans 39% Funde...
02 Marovertheedge
And it gets even worse. The unfunded pension liability monies aren't invested and never will be. You can't pay pensions out of an unfunded ...
China is about to overthrow Lond...
28 Febneville
This a good slap in the face for the downright crooked bullion banks,traders that have been front running ie algorythm trading etc It had to ta...
A Salvo in the Battle for the Go...
27 Febovertheedge
I would argue that the devil is in the details, i.e. the definition of money. What the people of the US are using is currency. Currency bei...
A Salvo in the Battle for the Go...
26 FebFrankinca1
Sort of written for a PHD in economics, which gold believers (myself) are not often that well educated, have difficulty following. The definition o...
A Salvo in the Battle for the Go...
26 Feb07788525833
The dollar has a monopoly over all other types of money which is rammed down peoples throats by gun and drones , any one wanting to change this...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Major DrillingMDI.TO
Announces Third Quarter Results and Declares Dividend
CA$ 6.40-7.11%Trend Power :
Corporate news
UR-Energy(Ur)URE.TO
Releases 2014 Year End Results
CA$ 1.15+3.60%Trend Power :
Financials
Rockwell(Cu-Gems-Ni)RDI.TO
Announces Filing of Preliminary Short Form Prospectus
CA$ 0.26+6.00%Trend Power :
Corporate news
Cardero Res.(Ag-Au-Cu)CDU.TO
Announces Proposed Reverse Takeover of Artha Resources
CA$ 0.04-12.50%Trend Power :
Corporate news
Goldcorp(Cu-Le-Zn)G.TO
declares third monthly dividend payment for 2015
CA$ 26.08-1.92%Trend Power :
Corporate news
Integra Gold(Gems-Ag-Au)ICG.V
Files PEA Technical Report on SEDAR
CA$ 0.32-5.97%Trend Power :
Corporate news
Fjordland Expl.(Ag-Au-Co)FEX.V
Geophysical Survey Outlines Strong Conductors on South Voisey's Bay Nickel Project
CA$ 0.03+0.00%Trend Power :
Corporate news
Clifton StarCFO.V
Announces Private Placements and Settlement of its Osisko Litigation Raising $11 million
CA$ 0.18+2.86%Trend Power :
Corporate news
Marathon GoldMOZ.TO
Hits 3.02 g/t Au over 32.9 meters (TT) in Step-Out Drilling, Valentine Gold Camp, Newfoundlan
CA$ 0.29-3.33%Trend Power :
Corporate news
Chalice Diamond(Gems)COD.V
Sulliden Mining Capital to acquire Coastal Gold, an Advanced Gold Project in Newfoundland
CA$ 0.02+0.00%Trend Power :
Corporate news
Comments closed
Subscribe to 24hGold’s daily market briefing
  • Prices and data of precious metals in 119 currencies and world mining companies
  • Daily analysis of the economy, markets and more
  • Free, daily and indispensable
Stay informed, subscribe now !
* Your email will never be shared.