A Stronger Case

With today’s spike in the precious metals and miners, following No Taper, precious metals miners like RGLD are making a stronger case for a major inverted head and shoulders bottoming formation, dating back to May.

You can see it for yourself on the daily chart below. To be sure,the “neckline” is sloping upwards, given the recent peak before pulling back. But a weekly close above $57 would be a very good start. Recall that all of the metals and miners are in established downtrends, with declining 200-day moving averages.

So despite the apparently obvious implication of imminent inflation from the No Taper decision, there is still plenty of work for gold bugs to do to reverse the major trend.

Still, it is hard not to think with today’s action that a stronger case is being built for the metals and miners.

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