Focused on the Miners

I've been focused on the miners lately, and I don't see that changing any time soon. I often look at an exchange-traded fund for the technical picture, but when it comes down to a miner ETF like the Market Vectors Gold Miners (GDX), I also want to look at the top gold and silver miner in the group to see how their technical pictures shape up. What's ironic is the top two names, Barrick Gold (ABX) and Silver Wheaton (SLW), are also inter-related with a project in South America that has given them headaches thanks to ABX's poor handling of wastewater, but one which may still be opportunistic for bulls.

ABX Source: StockCharts.com View Chart » View in New Window » SLW Source: StockCharts.com View Chart » View in New Window »

ABX's struggle is similar to the rest of the group, but it has given up a fourth of its value this quarter alone. SLW has only lost 20% of its value this quarter, but I use the word "only" loosely. Both stocks have almost identical chart patterns. Both have RSIs crossing over midlines (50) with the stock price pushing up towards gap resistance. Both have a very strong move in the stochastics. I included the smoothed stochastics, which I used based more on Fibonacci numbers, as well as the more commonly used reading just for comparison....88 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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