Looking at the intraday moves? Don’t miss what’s REALLY important for junior mining stocks.
You know, there’s more to the junior mining stocks than just the GDXJ ETF. There’s an entire index in Canada that includes multiple junior miners. It’s called the Toronto Stock Exchange Venture Index, and it’s been around for much longer than the GDXJ ETF.
Looking at the TSXV is very useful when one doesn’t want to miss the forest while focusing on individual trees.
And right now, the entire forest looks like it’s about to collapse.
I’ve been patiently monitoring this index for years, even though it usually doesn’t feature any changes. The reason I’ve been doing it is that I know very well that when we finally do see major changes on the TSX Venture chart, the implications can be truly epic.
We saw this kind of epic signal recently. I’ve described it to my subscribers many days ago, and today, I’m making this analysis available also to others.
The thing is: the TSX Venture Index finally broke below the rising support line based on the previous lows.
This is very important because the current (last few years) situation has been very similar to what we saw between 2009 and 2012. Back then, the analogous breakdown meant that the biggest slide was about to unfold.
So, yes. We see this profound signal right now.
This is the sign that your future self will thank you for noticing.
So, what’s likely to happen? We’re about to see a huge slide, even if we don’t see it within the next few days.
Just like it was the case in 2008, the move higher that we saw before the final (biggest) slide in gold, silver, and gold stocks (lower part of the chart), didn’t translate into a visible rally in the TSX Venture Index. Just as the index paused back then, it pauses right now.
Currently, it’s trading at about 600, and back then, it consolidated at about 2500. The price levels are different, but the overall shape of the price moves (lack thereof) is similar. This serves as a signal that the recent upswing in the PMs is not to be trusted.
The above chart is one of the weakest (from a technical point of view) that is seen across the board right now. There is a strong long-term downtrend visible in the TSX Venture Index, and if stocks slide similarly as they did in 2008, the TSXV could truly plunge – perhaps even to the 300 level or lower.
The recent breakdown suggests that this move is already underway.
Thank you for reading today’s free analysis. The full version – today’s (enormous, in-depth – it’s the flagship issue) Gold Trading Alert includes updated profit-take details for the current position in the precious metals sector. I encourage you to subscribe and take advantage of those premium details today.
Sincerely,
Przemyslaw K. Radomski, CFA
Founder, Editor-in-chief