We have been positive on gold and the miners of gold and silver for several months. We don't bring this fact up to gloat or say we told you so but rather to frame this update.
The technical condition of the market remains strong, with intense and sustained buying. We see no reason to rush to take profits, and we want to offer some additional stocks for your consideration.
Below are more precious metals issues you should check out and decide it they are for you. These names are not likely to be seen in a research piece from a major sell-side firm. You may have to dig.
Agnico Eagle Miners Limited
The on-balance-volume line, or OBV, has been rising strongly since December as buyers have been more aggressive. There is a golden cross of the 50-day and 200-day moving averages in early February. The moving average convergence/divergence, or MACD, oscillator is positive, and prices look to be headed higher.
Traders could have a protect sell stop down at $32.
Goldcorp (GG) is another miner who has acted strong and only made a shallow and temporary dip in price on a recent disappointing earnings report -- a sign that the market is looking forward to more bullish news in the months ahead.
Prices are above a key "neckline" at $16. We are witnessing a golden cross of the 50-day average crossing above the 200-day. Note the rising OBV line.
This chart of Royal Gold (RGLD - Get Report) , above, is the comeback story. Prices reversed to the upside after a long decline that just ended in January. Prices have doubled quickly. We are above the rising 50-day average and above the 200-day line. Volume is confirming the advance with the up move in OBV line.
This low-priced name may not be "low priced" for long. Yamana Gold (AUY - Get Report) has been bottoming around $2 since July. It started to make its move to the upside in February and has also been a quick double from its January low. We can see a golden cross of the moving averages and a positive OBV line.
This chart of Eldorado Gold (EGO - Get Report) , above, is a turn to the upside in progress. Eldorado has firmed above the now rising 50-day average and is above the 200-day. The OBV line turned up in September -- yes, September. This tells us that accumulation of Eldorado has been underway for months!
A close above $4.25 on Eldorado will be very bullish, but the stock is very buyable right here.
Midas Gold (MDRPF) is not a household name -- at least not in my house. This low-priced stock could surprise on the upside but don't consider it a core holding, and don't overweight it. This may be the definition of speculative, but I like the chart, and it seems that someone else likes it too. Prices are above the 50-day and 200-day moving averages, and the OBV line is going up.
Promise me you will do your homework first.
Golden Star Resources
Golden Star Resources (GSS - Get Report) has been a triple since January. Low-priced stocks can have spectacular percentage moves. We can see the golden cross from the moving averages and the rising OBV line. Prices have been correcting their recent gains, and another leg higher could get going soon.
This chart of McEwin Mining (MUX - Get Report) , above, shows a base from April to December. Prices broke out on the upside and then pulled back before taking off to the races. Prices doubled since just the beginning of the new year. The OBV line has risen strongly, telling us that buying has been aggressive.
Prices are correcting their advance, but this miner looks like it wants to move still higher in the months ahead.
Nova Gold Resources
Slow and steady is the way Nova Gold Resources (NG) has been acting. Prices broke out on the upside in November and pulled back before they began their rise. The OBV line has been confirming the price strength since November.
Last for now but not the least is New Gold (NGD - Get Report) . The stock bottomed in the July-to-January period, and you can see how dips to and just under $2 were bought. The OBV line turned up in August, telling us that accumulation has been underway for months. This is not a quick summer romance.
There was a bullish golden cross of the moving averages earlier this month. New Gold has been consolidating in the $3.50-to-$4 area recently, but further gains seems like the course of least resistance.