The XAU Gold and Silver sector has been trading in a bull market for around four years now. Online trading for stocks in this sector seem to go in spurts as with most bull markets. In recent weeks the trading has been rangebound and getting tighter. The stock trader knows what this means. Soon the Gold sector will explode in one direction. You can see that trading is closing in on trendline support again on the daily candlestick chart. When the same pattern emerges on a larger time frame as the weekly stock chart, it signifies the move will probably last even longer.
This sector will be one to watch in the coming days as that range becomes even tighter.
The stock trader likes to trade GLG, Glamis Gold Ltd. and AEM, Agnico-Eagle Mines Ltd. in this sector. NEM, Newmont Mining Corp is also a popular stock to trade in the group.