Recall that we were on watch for a consolidation in the gold, and pretty much all precious metals, miners last week. After a tame pullback to their respective rising 20 day moving averages, this is the first stop to observe closely for signs of buyers stepping back in. The SIL, ETF for the silver miners below, pretty well exemplifies the bulls nature to the pullback. Should the 20 day moving average area fail to hold, the convergence of the 50 and 200 day moving averages below is the next logical support level.
For now, though, the miners have done everything correct from a bullish perspective after a strong high volume thrust in late-summer.