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The Gold Miners Are About To Breakout

Published 05/26/2017, 10:38 AM
Updated 07/09/2023, 06:31 AM

It's hard to find an investor who is bullish about the Gold miner ETF (NYSE:GDX), as outflows hit levels never before seen. Below looks at inflows/outflows from GDX over the past 11 years. As you can see, investors are rapidly bailing out of GDX.

VanEck Vectors Gold Miners: Inflows And Outflows

Inflows and outflows are one thing, price is another. Below looks at the price patterns of GDX over the past 8 years.

GDX Price Flow

Pennant patterns tend to frustrate both bulls and bears, as no trend is in play. These patterns often cause investors to back away due to the choppy nature of the pattern. Pennants aren’t good about tipping one off to the future direction of an asset. But they are good to follow because when a breakout from the pattern happens, big moves tend to follow.

GDX is going to breakout of this pattern and the odds are good that a big move will follow.

Latest comments

Miners left for dead
The down channel is much longer than the uptrend. Is there anything there to indicste direction?
Miners were left for dead in late 2015 and more than doubled in 1st half of 2016.
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