One of the factors I'm looking at in determining whether global gold mining shares can reverse their multi-month bearish trend is the ratio between junior miners and seniors miners.
The weekly chart sees the price continuing to trade within a multi-month downward channel and below the downward trend line. So far this week, Juniors are outpacing Seniors by 1.41% on a relative basis and while the trend is broadly lower, there are minor signs of a potential reversal.
(1) The 14-week RSI has made an early breakout, possibly leading the price;
(2) although below the centre line, the MACD has made a bullish crossover.
A similar structure is seen during March 2016.
Juniors are more geared to the gold price thus signs of relative outperformance could be an early read into the broader sector.
The weekly chart sees the price continuing to trade within a multi-month downward channel and below the downward trend line. So far this week, Juniors are outpacing Seniors by 1.41% on a relative basis and while the trend is broadly lower, there are minor signs of a potential reversal.
(1) The 14-week RSI has made an early breakout, possibly leading the price;
(2) although below the centre line, the MACD has made a bullish crossover.
A similar structure is seen during March 2016.
Juniors are more geared to the gold price thus signs of relative outperformance could be an early read into the broader sector.