From the Desk of Ian Culley @IanCulley
Precious metal charts aren’t painting a bullish picture for investors.
Silver is underperforming gold. The Gold Miners ETF $GDX is posting new all-time lows versus the broader market. And everywhere you look, individual gold mining stocks are breaking down.
Well, not all mining stocks. One chart continues to fly high…
Check out Buenaventura S.A.A. $BVN:
BVN has gained over 70% since bouncing off last month’s lows, slicing through our initial and secondary targets.
Now, it’s coiling in a potential bullish flag just above our risk level.
The pennant or flag is a continuation pattern by nature, often resolving in the direction of the underlying trend.
My bias points higher toward 20, given the preceding rally. But I can’t hold BVN if it slips below 14.25. That’s our line in the sand.
If this potential bull flag fails, I imagine precious metals are a “no-touch” across the board.
The Harmony Gold Mining $HMY and Eldorado Gold $EGO breakouts likely fail in that environment. And the corrections in the bellwethers – Franco Nevada $FNV and Newmont $NEM – will only deepen.
Most importantly, gold won’t reach new all-time highs if BVN resolves lower, at least not anytime soon.
Goldbugs don’t have much to lean on in the way of bullish data points.
Yet through all the doom and gloom surrounding the precious metals, Buenaventura S.A.A. still manages to offer a glimmer of hope.
Stay tuned.
Click here to watch this week’s Gold Rush Video:
Thanks for reading.
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Allstarcharts Team
