2020-06-11 – TSX Gold Miners May Be On the Move Again
Our proprietary Heat Map continues to track the strength of TSX Gold Miners. Currently, the Gold Miners ETF (XGD-TC) produces Market Model Ranking (MMR) of 76 which is in excess of the TSX Index MMR of 51 as shown below;
On the close of June 10, 2020, our Swing Detection Tracking (SDT) Indicator has detected upward movement in Gold Miners ETF (XGD-TC) with a close above 19.52. This signal has been coupled with the break above the recent down-trending price channel as shown in the top pane below.
The bottom pane of the image above represents the ratio of Gold Miners (XGD-TC) to the TSX (XIC-TC). The relationship has been overlaid with a 2-Standard Error Regression Channel to illustrate oversold (green – bottom of the channel) vs overbought (red – top of the channel) conditions. Similar to direct price action, the ratio has broken out of it’s down sloping channel (blue) and is rising. The positioning of the ratio inside the regression channels indicates that XGD-TC is at value with the TSX and has room to move higher. Investors or traders looking for further confirmation of this move would look for a close above 20.88.
Regards,
Tim Koen, P.Eng
President
Riverside Analytics Inc
tim.koen@riversideanalyticsinc.com
www.riversideanalyticsinc.com
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