30Aug2:59 pmEST

Revive or Die

If you are seeking excitement from a given market where the stakes are as high as can be, it is tough to beat the location of the precious metals and derivative miners. 

Below, we have as large cap a name as you will finding in the gold mining complex, Toronto-based Barrick Gold, on the monthly timeframe. 

Gold and silver bears argue the latest push higher we have seen in the complex in August is merely another rally to be faded, bound to crack below to fresh, bear market lows. And that the U.S. Dollar will soon find a floor and begin to pressure precious metals and miners, once again. 

Gold bugs counter that the rubber has met the road for global central bankers, and that gold will prove to be the ultimate check on The Fed and their actions dating back at least to the financial crisis. Moreover, the focus on cryptocurrencies is misguided due to the intrinsic and historical value of gold, both of which will ultimately see the yellow metal revive for a new bull run. 

With competing, viable arguments in mind, consider the ABX monthly here to identify tangible evidence or objective points we may consider. 

First, ABX actually stopped making fresh lows in September 2015, nearly two years ago.

For the last two years, ABX has been steadily improving, albeit with plenty of tedious, grinding action. Bulls will point out the massive but well-defined potential inverse head and shoulders bottom, highlighted, which triggers with a monthly close above at least over $21 (if not a tad higher). 

Ultimately, a few tests over the coming weeks will sort out which likely prevails, especially if the Dollar can sustain an oversold rally--If gold and miners are truly in a new bull run then they should be able to almost ignore Dollar bounces. 

Talkin' 'bout My Generators Stock Market Recap 08/30/17 ...


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