Evidence is growing that the recent downturn in the Canadian materials sector - especially precious metals - has reached its conclusion, points out Dave Harder, analyst with the technical analysis firm Phases & Cycles.
A "double-bottom" - where prices fall, then rise only to dip for a second time - may have formed in gold, silver and precious metals stocks. That tends to foreshadow a more stable recovery where selling has been exhausted.
And there was another recent clear signal that the bear market for gold and precious metal stocks may have ended: the share prices of Silver Wheaton Corp. and Barrick Gold Corp saw little selling pressure on recent bearish news of a major mine suspension.
Mr. Harder details all this, along with some charts, in this PDF report that Phases & Cycles has given us permission to re-publish in its entirety.
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- Gold Front Month Futures$1.17K+16.30(+1.41%)
- Copper High Grade Front Month Futures$2.09-0.04(-1.74%)
- Silver Front Month Futures$14.73-0.11(-0.75%)
- Barrick Gold Corp$16.19+0.78(+5.06%)
- Silver Wheaton Corp$19.62+1.16(+6.28%)
- SPDR Gold Trust$112.32+1.75(+1.58%)
- Kinross Gold Corp$3.21+0.40(+14.23%)
- Goldcorp Inc$19.12+1.13(+6.28%)
- Updated February 5 4:00 PM EST. Delayed by at least 15 minutes.