Miners: We Want a Breakout, Not Another Fake-Out

The following is just a small excerpt from my latest Weekly Strategy Session (please click on that hyperlink for details about trying it out). which I published for members and 12631 subscribers this past Sunday. 

 Although they have been heartbreakers of late (tons of head-fakes higher and failing to sustain upside follow-through), the precious metals miners and global materials miners are setting up nicely again as longs. 

First, the weekly chart for the senior gold miner ETF shows a tight technical base spanning the past month or so. Another move over $27.06 likely brings in more buyers to resolve this consolidation higher. 

Also note the long-term bottoming thesis for the gold miners, dating back over one year now, is still very much in play with the potential for an inverse head and shoulders pattern to send the miners much higher in the coming months. A stop-loss not much lower than $25.40 is suggested. 

Regarding global miners, CLF WLT represent the setups we have seen from materials and coal miners of late, some of which have fizzled out. However, it is worth stalking them again given how the charts have tightened up. In addition, these are heavily-shorted issues capable of squeezing much higher.

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