Some Gold Miners are getting some love this Valentine’s Day. Here’s a few Scott thinks we should watch: $NEM $AEM $EGO $GOLD and $FNV – February 14, 2022
NEM GLD GDX AEM EGO GOLD FNV
This is Scott with your Chart of the Day. I want to take a look at a few gold miners. I’m not sure if you have seen it, but GLD ( NYSEARCA: GLD ) is moving very nicely. If I zoom out here you can see this long-term downward sloping trendline that has acted as resistance for Gold ( NYSEARCA: GLD ) forever. Right here, right here, right here. Right there, right there, and we finally broke above and held above this past Friday. A little follow-through today on pretty good volume but that is also getting people to take a look at some of the mining stocks like GDX ( NYSEARCA: GDX ).
Now, GDX ( NYSEARCA: GDX ) is a tad extended right here right now, as it is bumping up against its 200-day moving average. I have a similar trendline here just since May of last year, a downward sloping trendline, clear resistance. We got above, we held above, but now, of course, we have that 200-day moving average to contend against. I don’t know that it is going to be a straight line to the moon here for gold bugs but I do think there is definitely some potential in some gold miners.
Here are a few that I am watching right now. The first one is Newmont ( NYSE: NEM ). Newmont ( NYSE: NEM ) is above all of the major moving averages. It had a power move off the 200-day moving average on higher than average volume. Again, a little follow-through here today but I like this consolidation. It pulled in a little but didn’t even make it down to that 8-day exponential period moving average before the buyers showed up again. So I think Newmont ( NYSE: NEM ) is definitely one to watch and I can see a clear pivot right there at around 65.45. We want to see it get above, stay above, and do it on volume, but I would probably want to get some started closer to these major moving averages here.
Another one is Agnico ( NYSE: AEM ). AEM ( NYSE: AEM ), a big move off the 50-day moving average today, coming on higher than average volume. This one is still in a pretty significant downtrend. And you can tell that because the 200-day is sloping lower. Ideally, I am a fan of stocks when the 200-day is moving upwards. That is usually when the momentum, long-term momentum is to the upside. The long-term momentum is still here to the downside so this could, again, be a little bit of a bumpy ride. But I have got to pay attention to that volume, some pretty big volume spikes here the last couple of days on AEM ( NYSE: AEM ).
Another smaller miner to watch is Eldorado Gold ( NYSE: EGO ). Again, really good volume here on Friday. Nice follow-through volume today. A bit extended now above that 200-day moving average. So in this case, I would want to see this kind of pullback in and bounce off of the 8-day exponential period moving average, maybe give you a little upside reversal closer to support.
Barrick Gold ( NYSE: GOLD ) is usually one that a lot of people think of. And again, in a longer-term downtrend. You can see how I was watching for it to kind of pop up earlier back, I guess June of last year. It had a little wedge pattern, I was looking for an upside move, it actually went the other way. I’m glad I wasn’t involved in that. Again, the longer-term trends are down but it does look like it is trying to firm up here a little bit. You can tell that by the buyers coming in and the fact that the stock is back above that 200-day moving average. So again, a little extended here but definitely one I want to watch.
Another one finally is, Franco Nevada ( NYSE: FNV ). FNV ( NYSE: FNV ), used to be an IBD 50 stock back here. Back when it was really rocking in 2020 I believe, it was on the IBD 50. It since fell off of that list, but again, it is back above its 200-day moving average. Now, I would love to see FNV ( NYSE: FNV ) just kind of base a little bit, go sideways, build a base of consolidation, really show that that 200-day moving average is going to act as a floor. So that is what I will be watching for here on FNV ( NYSE: FNV ).
Now, some of these do have earnings coming up so pay attention to those dates and make sure you are not holding anything over earnings unless you have a really good buffer zone.
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