The precious metals and their miners are rallying today. Overall, they remain in consolidation mode after their rally dating back to earlier in the summer off recent lows. The consolidation is not a surprise, given that the gold miner ETF had run directly into what was likely to be overhead supply, or resistance, meaning prior bottom-fishers who found themselves trapped from the spring months were much more likely to sell than buy more or hold when they made the round trip to break-even.
However, it is worth noting the way in which price reacts to that overhead supply.
Thus far, an aggressive rejection down away from the supply has not materialized. Bears had their chance yesterday but with no follow-through today. And updating the daily chart for GDX, ETF for the gold miners, you can see a bull flag formation still developing. Upside triggers of $30.40 and then $31 likely set in motion another leg higher. I would be careful about front-running a breakout, though, as we know the miners and metals all remain in established longer-term downtrends. For all intents and purposes, even a further rally up to the 200-day moving average (declining) can still quality as a mere bear market rally before the next major leg lower.
However, taking it one step at a time you can see the setup developing reasonably well.
If you do try to front-run a breakout, a stop-loss below $28 makes sense.
I am particularly interested in stalking silver miner Silver Wheaton (SLW).
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Chess, I just did a market order for 250 shares of SSRI, adding to my position. I got the first 100 shares at the ask price, but the next 150 actually pushed the price up a bit. On a stock that trades 1M+ shares a day, this is pretty unusual in my experience.
You have commented that that in 2009 the SPY rose steadily, without significant corrections to allow more favorable entry points to latecomers. So far, this sure looks like a similar situation in the miners.
It could be a generational low for miners. Still too early to tell, so just taking it one step at a time.