Gatos Silver (GATO: NYSE)

Gatos Silver (GATO) is set to benefit from a promising 2024 as CEO Dale Andres projects that the company’s silver and silver-equivalent production will fall in the upper range of previous forecasts. This bullish outlook is indicative of strong operational performance and suggests the potential for financial results to surpass expectations.

Gatos Silver’s 70% stake in the Los Gatos Joint Venture (LGJV) positions it for significant upside as the company ramps up exploration efforts in the Los Gatos district. The aggressive exploration strategy near the existing mine and in prospective areas could lead to new discoveries and resource expansion, potentially driving further stock price growth.

In Q1 2024, the company posted a 16% year-over-year revenue growth, reaching $62.9 million, largely driven by higher sales volumes. This positive performance underscores Gatos Silver’s growth trajectory.

We are bullish on GATO above $12.80-$13.00, with an upside target of $25.00-$26.00.

Energy On-Sale Compared to Tech (Sector ETF: XLE/XLK)

The comparison between energy (XLE) and technology (XLK) sectors offers insight into market behavior. XLE, one of the smaller sectors in the S&P 500, is contrasted with XLK, the largest sector. When XLK outperforms, it typically signals strength in the broader market due to its significant influence on the index. However, if XLE outperforms XLK, it can be a cautionary signal, as XLE’s smaller size doesn’t have enough weight to meaningfully move the overall index.

This ratio also acts as a barometer for inflationary pressures. Since XLE is closely tied to inflation-related trades, a strong performance from XLE compared to XLK could suggest rising prices. A break through the resistance level of the inverted saucer formation would confirm a potential upward trend for XLE and indicate the likelihood of a return to inflationary conditions.

Ethereum (ETHUSD)

Ethereum had a volatile week but managed to close with a 1% gain, with buyers successfully defending the $2,400 support level. This level remains crucial, as losing it could allow sellers to push the price down toward $2,000, which would likely affect most altcoins negatively as well.

Looking ahead, the market is showing signs of indecision, reflected in Ethereum’s sideways movement. Ideally, ETH would break above $2,800 in the coming weeks, signaling that buyers have regained full control and potentially ending the period of hesitation.