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Did The Gold Miners Just Complete A Massive Bottom?

ByTommy Humphreys
Published 09/12/2013, 12:08 AM
Updated 07/09/2023, 06:31 AM

Eight days ago I wrote that gold was set to launch to $1500+. As it turned out, a deeper pullback was in store over the ensuing days. However, support in the $1350s has held repeatedly and the risk/reward is quite compelling for gold longs from current levels:

Gold Daily
Gold Daily
Another $77 pullback, virtually identical to the July-August pullback – yesterday’s ‘doji’ candlestick at support offers a good probability that the recent pullback may have ended yesterday.

Meanwhile, the gold miners--as represented by the Market Vectors Gold Miners ETF (GDX)--may have completed the right shoulder of a nearly symmetrical multi-month inverse head & shoulders bottom:

Gold Miners ETF (GDX)
GDX Daily
Yesterday’s ‘hammer’ candlestick at the confluence of Fibonacci and horizontal support offers good odds that the recent pullback came to an end yesterday – yesterday’s low now becomes an important reference point.

Original post

Latest comments

In answer to the question of the heading of this article the answer is NO.
You better keep dropping your support levels as gold is still in a bear market. The last rise in gold over the past few months was just a pull back in a bear market with much more downside to go before reaching bottom under 1000. If you insist on staying bullish God bless you because your money will be lost.
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