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.
- Gold Front Month Futures$1.28K+4.80(+0.38%)
- Copper High Grade Front Month Futures$2.14-0.04(-1.83%)
- Silver Front Month Futures$17.35+0.07(+0.42%)
- Barrick Gold Corp$23.00+0.52(+2.31%)
- Silver Wheaton Corp$24.42+0.23(+0.95%)
- SPDR Gold Trust$122.07-0.14(-0.11%)
- Kinross Gold Corp$6.83+0.29(+4.43%)
- Goldcorp Inc$24.11+0.36(+1.52%)
- Updated May 5 4:00 PM EDT. Delayed by at least 15 minutes.