Gold is once again confirming support at the August uptrend near $1770. If gold stays above this level — and rises above the recent high at $1850 — it’ll show strength that could push it through its stronger resistance level at $1925, suggests Omar Ayales, editor of Gold Charts R Us.
Our recommended junior miners tend to sell at a discount when gold is out of favor. The decline in gold has been long and drawn out. However, when picking our individual gold shares, we knew this might be a reality one day and had chosen junior miners with strong staying power, well funded, with great assets and overall, good take-over targets.
Kirkland Lake Gold (KL) is one of my favorites and a position that has delivered gains during gold’s decline since peaking in August 2020. Recently it broke below key support at $38, but it is now looking ready to rise and test the October downtrend near $42 — or even the top side of the year long sideways band near $46.
Equinox Gold Corp. (EQX) is also showing signs of an upcoming rebound. It recently dipped below the August lows near $6, but it's now jumping back above. The leading indicator is rebounding from a low area, suggesting short term momentum could swing bullish.
If EQX can hold above $6 and rise to stay above the August 2020 downtrend near $7.50, it could then commence a bullish upward path, to possibly the August 2020 highs near $14.
Osisko Gold Royalties (OR) is re-confirming support above $11 and it's bouncing up. It’s first resistance is at $12, and a more relevant one is at $13. A break above $13 would show renewed strength that could push OR to the June 2021 high near $15. Price action suggests momentum is picking up steam.
Harmony (HMY) is another one of my favorites. It’s a solid U.S. producer with a great dividend policy. It continues to uptrend since September. The recent bounce up is confirming the September uptrend as support, and if it can now rise above the May downtrend near $4.20, it’ll show renewed strength and rise higher.
Hecla Mining Company (HL) is under pressure, but showing strength by holding above $5. If HL continues to build a base above the August support, it could then catapult to the November highs near $6.50, our first target. A break above this level and it’s off to the races.