The ASX gold sector is definitely in a bullish mood at the...

The ASX gold sector is definitely in a bullish mood at the moment:
* ASX Gold Stocks Index (XGD) +23% since start of Dec 2018 & now at around a 5.5 year high;
* AUD (XAUAUD) gold price at near all time highs (currently A$1879), +13% since start of Dec 2018.
* Gold stocks making 52 wk highs today:  NCM, AGG, AQG, CHN, DRM, RED, RRL, SBM SLR. Many other gold stocks made 52 wk highs within last 2 weeks (incl. EAR).
* The big commodity stocks like BHP, RIO, FMG making 52 wk highs as well today.

Sometimes as they say - 'rising tide lifts all boats' as most of the large-mid cap gold stocks are doing very well the last 2-3 months and it could be called a current 'hot' sector. The high cost producers and the companies with mines in Australia tend to respond well during this sort of  period. It’s been a long time coming as it has been very patchy in the ASX gold sector for many years now.

The test will be how the ASX gold stocks react to the next pullback in AUD gold price and/or when the wider XJO takes a breather (feeling a little extended atm).  Also, as I stated previously, most years late Feb to August are usually bearish for most ASX gold stocks. Maybe this year will be different or the current ‘hot’ period will cool to ‘luke warm’ for a bit.

AUD Gold:


On EAR's chart:

My recent weekly chart highlighted the significance of 26 cents Resistance. The gap on open Monday hitting 26.5c then closing at 23 cents, on high volume, shows the importance of this 26 cent Resistance level. It could take many attempts to break it (it may overcome it quickly if AUD gold continues above A$1820 over short-term). For reference, in the 2017 EAR bull run, it took EAR four weeks to contest through 26 cents Resistance.

While EAR remains above 22 cents Support, I see no concern about its ST trend. This week looks likely to equal the weekly volumes of the previous two weeks, which were also high.