Gold Stocks Continue to Advance

Fidelity Select Gold Fund (FSAGX, last change: 1.65%)

We identified the end of the bear market for gold stocks in the blog post on August 16. The bullish trend continues for the gold mining sector and the Fidelity Select Gold Fund (FSAGX, last change: 1.65%) is one of the best mutual funds available for investors to participate. While the general stock market is weakening and we are heading into the often volatile fall season, FSAGX may be a good choice for investors seeking capital appreciation.

 

Buy/sell signals for Fidelity funds are available at FidelitySignal.com 

Sector Rotation: New Bull Market Started for Gold Mining Stocks

Fidelity Select Gold Fund (FSAGX, last change: 5.22%)

The chart pattern for the Fidelity Select Gold Fund (FSAGX, last change: 5.22%) has turned positive and we think that the sector is in the beginning stages of a new bull market now. FSAGX is making higher highs and higher lows, while clearing the 100 day moving average too. We wouldn’t be surprised to see a pullback in the next few days after the recent strong performance, which should provide investors with new opportunities to establish positions.

Buy/sell signals for Fidelity funds are available at FidelitySignal.com 

Gold stocks break out of trading range

We’ve been tracking gold stocks for some time and the breakout happened today, following a 3.02% move in the gold bullion (GLD).

SPDR Gold Shares (GLD) up 3.02%

SPDR Gold Shares (GLD) up 3.02%

The Fidelity Select Gold (FSAGX) fund is up 1.64% today and broke out of its trading range

The Fidelity Select Gold (FSAGX) fund is up 1.64% today and broke out of its trading range

On the move: gold stocks are up in a weak market

Gold bullion (see the GLD ETF) broke above the already steep uptrend resistance line and accelerated to a break-neck speed.

The uptrend of the SPDR Gold Shares (GLD) ETF is accelerating.

The uptrend of the SPDR Gold Shares (GLD) ETF is accelerating.

The Fidelity Select Gold fund (FSAGX) closed up 2.19% on Friday and was the best performing sector fund. However, the price pattern of FSAGX shows divergence compared to GLD. FSAGX will need to break above the April highs to resume its uptrend. It is also possible, that the divergence is an early warning, which signals that the speculative bubble in gold bullion will not continue on the long term.

The Fidelity Select Gold fund (FSAGX) is up in a weak market, but still in a trading range.

The Fidelity Select Gold fund (FSAGX) is up in a weak market, but still in a trading range.