Gold, silver, and precious metals miners have been bouncing lately (I suggested going long miners on the 16th to my PLUS subscribers, which I’m glad to say was the exact bottom). I still think they have room to run, but for the more nervous folks out there, I wanted to point out that an important price gap is quite close. In addition, as the gold sector chart shows below, the moving averages have entered into full-blown collapse mode.
For anyone who thinks the bounce is metals has run its course, the instrument DUST (triple-bearish on miners) could be an interesting way to go. It has a very well-formed bullish base, and it came extremely close to closing its own price gap, which I’ve pointed out with an arrow below. I say again, I think miners have more room to run, and I’m thinking both of these gaps well get swept aside, but I at least wanted to share this possibility.
