Here’s a few charts that show what’s happening in gold miners.
The first chart shows 2 key things. First and foremost there has been a shift in momentum. I’m watching to see if momentum can get overbought again. If it can, maybe this base/range is ready to break higher. Also buyers showed up at the 200 day moving average.
That area also happened to be the the .618 retrace of the prior rally. It sets up as a great level to be long against.
Moving to a short term look, we see again how well defended the 23 level has been. It’s also worth noting the short term momentum hasn’t quite shifted to bullish yet.
If you like the precious metals and miners, you have a pretty solid area to trade against. On the other hand if this support is lost, we can get short and target the bottom of the range around 21.
Trade ’em well