Gold has tried multiple times to get above, and stay above, the horizontal I’ve drawn below. It doesn’t seem well-positioned to finally conquer it anytime soon.
Of more interest to me is the exchange traded fund for the precious metals miners, which is GDX, shown below. It was strong last week but then got pounded. As it was doing so, I took note of the green trendline and assumed it would find support there, which it did, as I’ve emphasized with the arrow.
In order for the miners to truly rally, it should have not penetrated into the pattern I’ve tinted in green. Instead, it spoiled the pattern over a matter of days and got oversold down to that trendline, bouncing powerfully afterward. I believe this trendline will continue to provide good support, but I think it’s much less like that GDX will keep ascending. Here’s the longer view of the same instrument, which is pretty much a glorious mess.
