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Metals And Mining Sector Ready To Fall...Hard

Published 09/26/2021, 12:11 AM
Updated 07/09/2023, 06:31 AM
XME
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GDX
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Here is the SPDR® S&P Metals and Mining ETF (NYSE:XME), which has demonstrated its overhead supply by way of that upper horizontal line:

XME Daily Chart

As you can see from many years of data, this instrument definitely has the ability to top and fall.

XME Monthly 2002-2021

As the ratio chart below suggests, XME’s explosive rally versus the VanEck Gold Miners ETF (NYSE:GDX) is very long in the tooth, which I believe improves the likelihood that XME is in for some weakness.

XME/GDX Ratio Chart

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