Golden Contrast:
I have always been a big believer that technicals and fundamentals compliment each other. The old saying goes “the fundies tell you what to buy and the technicals tell you when to buy.” If we were to look at a PRICE chart comparing AEM to NEM which are in the same gold mining group we could see the stronger action for the former here. One could argue whether one has a more competent management team, or better mines, etc but PRICE is making it very clear which one should be overweight between the two. AEM on a YTD basis is now up 11% while NEM is lower by 12%. Over last one-month period, they are both seeing nice returns, but again it is AEM advancing 22% while NEM is up 14%. If we looked at them on their individual merits we would see AEM has broken above a bull flag pivot of 57 which carries a measured move to 67, but it may see some back and filling here after Tuesday’s bearish dark cloud cover candle. NEM which is more than 30% from its most recent 52-week highs (AEM is just 1% off its own annual peak, not a typo) could mildly look bullish on its MONTHLY timeframe with a reclaim of the 200 MONTH SMA in March after a bounce off the round 30 number in February.