DUNDEE PRECIOUS METALS (DPM.TO) - March 28, 2024
With the price of Gold (GC.F) rallying to new all-time highs recently, gold producers such as Dundee Precious Metals (DPM.TO) have been increasing in relative strength lately. About a month ago, DPM.TO climbed up from the Unfavored zone to the border of the Neutral zone and the Favored zone of the SIA S&P/TSX Composite Index Report, unwinding a tumble down the rankings that occurred over December and January.
DPM.TO finished yesterday in 55th position, up 4 spots on the day and up 101 places in the last month.
A major breakout is underway in Dundee Precious Metals (DPM.TO) shares this week. A year ago, DPM.TO broke out of a downtrend, and rallied up into the $7.75 to $10.25 zone where it has been consolidating gains for the last year. A downswing bottomed out near the bottom of the range back in February and in recent weeks, DPM.TO has been on an upswing.
This week, DPM.TO has broken out to a new all-time high, confirming ongoing accumulation and signaling the start of a new uptrend. Based on a measured move from the recent range, the next potential resistance may appear near $12.75. Initial support moves up to the $10.00 round number from $9.50.
Dundee Precious Metals (DPM.TO) first came under accumulation just over a year ago when they snapped out of a downtrend and rallied into the $7.75 to $10.50 range where they have been consolidating for nearly a year. Bouncing back from a drop down to the bottom of the range, the shares have been on an upswing for the last month, rallying to the top end of the range.
DPM.TO has already completed a bullish Spread Quadruple Top breakout. A close above $10.50 at a new high would complete a pending spread triple top pattern and confirm the start of a new advance. Should that occur, horizontal counts suggest the next potential resistance on trend may appear near $11.55 or $12.25. Initial support may emerge near $9.45 based on a 3-box reversal.
With a bullish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 9 out of 10, DPM.TO is exhibiting short-term strength against the asset classes.
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