The Miners Look Ready To Dance

Gold and silver have been en fuego, with gold breaking over 1700 again to start September. Whenever these precious metals run, the equity trader immediately turns their thoughts towards the miners.

Funny thing is though that the miners have had a history of getting the invitation for the party, but spending so much time getting ready for it that the host is showing people the door when they arrive. Well the invites went out 2 weeks ago and the miners are now knocking on the door. Is it too late? Let’s take a look.

Market Vectors Gold Miners (GDX)

The Market Vectors Gold Miners ETF (GDX) has been going through a bottoming pattern since April. In fact, a move over the resistance at 48.25 gives a free pass to continue higher, towards the completion of a "W" pattern at 57.50.

This time the Relative Strength Index (RSI) is bullish and the Moving Average Convergence Divergence indicator (MACD) is positive, having averted a cross to negative. Translation, it looks good to the upside. And its little sister, the Market Vectors Junior Gold Miners ETF (GDXJ) is set up similarly. This has resistance to breakout higher at 22.25 before room to 24 and then 25.90 higher.

Market Vectors Junior Gold Miners ETF (GDXJ)

It also has a bullish RSI and a positive MACD to support it. Looking good little sis. Oh, one last check. What is the metal itself doing? Does it still have room to run? In fact both gold and silver are looking good for more upside with the SPDR Gold Trust Shares (GLD) continuing on to the target of 168.25 from the symmetrical triangle breakout. Perhaps the miners will get a chance to dance this time.

SPDR Gold Trust Shares (GLD)

Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

Original post