by Jordan Roy-Byrne, CMT
The Daily Gold
Gold and gold stocks finally showed a bit of weakness during the holiday shortened week. Gold had its biggest weekly loss in months, losing 3% to $1217/oz while the miners (GDX, GDXJ) declined about 5%. Silver lost 4%. If weakness in Gold and gold stocks continues then we should turn our attention to technical support and see if it will hold. Gold and gold stocks are trading above the 400-day moving average which has been key resistance since 2011. Holding that support in the days or weeks ahead would offer confirmation that a new bull has started.
The following chart plots the daily candles for GDXJ and GDX. GDXJ, which is showing more strength has initial support at $26 followed by strong support near $24 and $23. Note that the 50-day moving average, 400-day moving average and 38% retracement of the rebound figure to coincide in the low $24s. Meanwhile, GDX has initial support at $19 with strong support in mid $17s and at $17. The confluence of support in GDX is in the mid $17s.