We have been noting that it is a bounce within a downtrend for the precious metals. In subscriber updates I’ve gone into detail on the parameters, and publicly we noted that hype from the usual gold “community” suspects should be tuned out; play the bounce as you will, but understand the current trend (AROON just went green, but the series of lower lows and lower highs supersedes that).
It would be almost too perfect for GDX to stop right where I’ve drawn a line, but so far that is proving to be a point of resistance, where man and machine are at least pausing to evaluate during the low volume (except for yesterday’s short covering extravaganza) Santa week.
There is still a case where if the market goes risk off gold and the miners could resume upward. But for now, a downtrend is a downtrend, isn’t it?
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