On Monday, this happened.
We have a crossover.
This may be very short-lived.
You can see how stocks have been climbing a wall of worry, irrespective of the near-record Aussie gold price. Similar to the Oct-Dec 2023 period.
Make sure you have a look at the Relative Market Strength chart and description further on.
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The A$4,443 target is still in focus.
It also looks like the predicted 61.9c FX (AUD/USD) is playing out.
The US$POG target of $2,703 was hit on the 18/10/24. The final high occurred on the 31/10/24 at $2,790.
This old target price is now a pivot point until the target is reset.
If the reset occurs in the current cycle, the reset price is US$2,593. Not very far away at all.
Still plenty of room for sideways US price action till then.
.Relative Market Strength
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Charts for relative market strength now apply to around 200 gold stocks.
The comparison is against the XGD.
Support, resistance and trends all apply.
While the charts look similar to price charts, there are key differences.
Charts have been excellent at identifying which stocks to buy/sell at key points and also tells you when a stock is underperforming the market, regardless of how the sector is moving.
A rising tide DOES NOT lift all boats.
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This sentiment chart (below) appears to do something else.
The previous high crossover occurred on the 28/10/24. The actual US gold price topped a few days later. A good early warning system?
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Another KEY component – direction (rising or falling) tells you if you should be investing in juniors or producers.
When falling, juniors are getting hammered.
If sentiment is rising and this chart is falling, go for producers.
When it turns up and sentiment is rising, look for performing juniors.
When flat, focus on relative market strength for individual stocks.
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The fact this can’t push through 50% suggests to me we are NOT yet in a gold stock bull market.
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This sentiment chart is derived from the 200-odd stocks with RMS charts.
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