Despite the big up day, HUI (daily) remains in consolidation.
GDX (daily) remains in consolidation.
GDXJ (daily) remains in consolidation.
Captain Obvious’s bottom Line
The gold stock sector remains in corrective consolidation, despite the big bounce today.
Overbought readings have been worked off and it could break out of consolidation from here or it could drop and fail the SMA 50. Regardless, it has already done good corrective work if the May-June consolidation is a good guide. But if a more significant broad correction is brewing – along with a bouncing USD and Gold/Silver ratio – the correction could go deeper. The miners are after all moving more or less with the broad markets lately.