In a video I made over the weekend, we ran through several different technical issues and scenarios for the precious metals and miners going forward. The bullish scenario of an inverse head and shoulders bottom taking hold seems to be the one happening now, particularly for the gold miners. The first chart below is the daily timeframe of GDXJ–The more high beta junior gold miners ETF. Note the inverse head and shoulders bullish setup forming, with a well-defined neckline to observe for a trigger of the pattern.
Also note a sign of improving risk appetite in that the juniors are outperforming their senior counterparts, which we see on the second chart below with the GDX ETF.
There is still much work to do for a major bottom. But so far so good for the bull case.
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Thanks for staying on top of this sector. I’ve been waiting to add to core positions for awhile. You’re a clear voice in the midst of a highly emotional trade.
Thanks, charlie.
I echo what Mr. Broccoli said. Well reasoned technical analysis is so hard to come by in the metals, which seems to such an “emotional” sector
It is, bath. Thanks.