Gold stocks are still correcting. Their necessary selloff to work off overboughtness and rebalance sentiment after their latest upleg peak hasn’t finished its mission.
The major gold stocks have yet to revisit oversold levels and eradicate early August’s universal greed. And they haven’t yet fallen far enough to leverage gold’s own correction normally.
The depth and duration of this gold-stock correction is dependent on gold’s own. And that doesn’t look over yet either since gold remains so far above its 200-day-moving-average support zone.The gold miners’ stocks are still correcting, continuing to rebalance both technicals and sentiment. This sector’s huge surge into early August spawned extreme overboughtness and universal euphoria, which are gradually being bled away. This same necessary and healthy corrective process is underway in gold itself, which overwhelmingly drives gold-stock price levels. This is leading to great buying opportunities.Gold-stock speculators and investors are growing weary, wondering when miners’ next upleg […]
October 25, 2020 (updated October 25, 2020) Published by StockMan