The 6-pack below looks at several charts in the metals sector – gold, gold miners and steel, each of which looks to be facing similar technical setups.
Each asset or ratio above has something similar in play in the short and long term. In the short term, each has been in an uptrend over the past couple of years (higher lows). In the long term (since the 2011 highs), each is in a downtrend (series of lower highs).
Each asset or ratio above is testing support at the same time and support is support until broken.
Metals bulls do not want to see these support lines break, as the long-term trend (6 years) remains lower. What metals do at these key support lines will send an important short- and long-term message as traders have positioned themselves for a big move in the near future.