It Tells a Good Story

On the back of Toronto-based gold miner Kirkland Gold announcing this morning that it had strong first quarter production for 2018, we turn to the price action in precious miners as a whole and continue to see slight improvements, especially at various intervals during this week's inter-market volatility where they could have--and probably should have--been crushed. 

Kirkland, below on its daily chart, has been sporting one of the better overall gold miner charts for a while now. And the recent weakness may very well tell the story of a final shakeout, threatening a (highlighted) triangle consolidation breakdown before turning on a dime and sprinting towards an upside breakout. 

There are a few other gold miners which feature similar technicals to Kirkland. But the main takeaway is that we still need to see the precious metals themselves sustain intermediate-term breakouts, combined with more broad-based strength among precious miners beyond a stud or two. 

Nonetheless, the KL chart tells a good story for gold bugs, and breaking and holding back over $16 ought to reinforce the bull thesis here. 

Elsewhere, the broad market gap down is not quite as ominous as bears had hoped for, at least according to futures overnight. I am seeing a good deal of green on my screen regarding equities, and the look and feel of the action so far is more of drifting and pausing than it is of a rollover. 

However, if bears crack the S&P 500 Index back under 2,640 today that may change things fast.