I was stopped out of gold stocks when the XAU failed to break the trend line to the upside. It’s been choppy trading the last few days.

USNA - USANA Health Sciences Inc. is a stock to put on your radar. After pulling back five days, USNA has found support at it’s 20, and 50 day moving averages. Momentum is starting to favor the bullish scenario, with the 20 dma actually crossing above the 50dma. I’ll watch for a higher high trading pattern on the daily, or strength intraday.

I’m not thrilled with USNA retracing 100% of that wide-range green bar, but maybe this is just a retest.

The XAU - PHLX Gold and Silver Sector Index has been range-bound for a little over the past month. Support has held below the 135 range, and stocks have stalled above XAU 140. The index has touched resistance three times now, and is attempting to hold the flat 50 day moving average at 139.65.

I bought a few gold stocks here at XAU 139-140 with a stop below XAU 138.89 roughly. Target 145 XAU. AEM, MDG, and GDX look decent. PAAS and SSRI are two stocks in the silver sector that usually move well for me. I’ll consider adding if XAU 141.7 is taken out.

As I’m writing this, XAU is ramping. You’ll notice that the XAU 5-minute actually makes a lower low, which would be considered bearish. My thought is that stops were taken, and the bulls had enough firepower to move back above pivot 2. A stop below the 138.89 protects me if I’m wrong.