In not rising strongly after the FOMC minutes time bomb, the precious metals mining ETFs now have the potential to be building bear flags with their upward biases. This includes diminishing volume (GDXJ and SIL as well), which supports the bear flag scenario.
If these are bear flags, the upward drift could continue for a few more days, but until GDX for example, takes back its trend channel and gets above the EMA 20 the bear flag scenario is in play. Just something to be aware of.
A subscriber asked me to include FNV in next week’s report, which I will happily do. But in taking a quick look at the daily chart I saw something ugly; a potential bear flag below the 50 day averages.
Goldcorp is similar.
Yet Newmont appears a-okay.
As does Silver Standard.
Bottom Line
The recovery from the angst of the Fed minutes has not been robust and so far fits the definition of a bear flag, which is a modest rise on diminishing volume.
Just a little short-term chart management for your consideration.
