The precious metals sector has struggled to gain traction this year with gold and silver trading well off the early year price peaks.
That said, the downtrend slowed and the price action began to take on an accumulation pattern – we can see this in the broad basing formation.
Gold will need to close over $1800 to generate our MFU-2 price target at $1978. We like the odds of this occurring as 50-day moving average turns higher and the 200-day moving average flattens.
Gold Futures Price Chart
There are several good trading setups in the precious metals sector. Today we share one of them: Wheaton Precious Metals (WPM). This stock is also basing and could form a larger cup formation if it can achieve its MFU-2 and MFU-3 price targets. I am eyeing the MFU-2 target at $42 first. It will need to exceed this price area first before we look higher.
$WPM Wheaton Precious Metals Stock Chart
The author or his firm have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.