Chris Vermeulen: A couple weeks ago I posted these same charts talking about the pending breakout (in either direction) with silver, gold and mining stocks. Fast forwarding to this week its clear this sector continues its struggle to rally. Key support levels are now being tested and if these levels fail prepare for a sharp correction with mining stocks showing the most downside potential of roughly 25% for the GDX ETF trading fund.
Let’s take a quick look at what is going on.
Gold Trading Chart:
The chart of gold shows price being wedge into the apex of the down sloping resistance trend line and the rising support trendline. Gold was trading below this level but has since bounced. But if gold closes the week below this line in the sand the price could start to fall quickly and test the $1200 per ounce within a week or two.
Silver Trading Chart:
Silver is under performing gold and trading below its support level currently. If silver does not recover by Friday’s closing bell then things could get ugly for a few weeks as investors start to exit their positions.(...)Click here to continue reading the original ETFDailyNews.com article: Silver, Gold and Miners About To Sell Off AgainYou are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
- Gold, Silver, and Miners Flash Short-Sell Signal
- What Gold, Silver & Precious Metal Miners Are Signaling
- Gold, Silver and Miners: Powerful Reversal Off Multiyear Support
- Ground Floor Opportunity of A Commodity Supercycle In Gold and Silver Miners?
- Market Vectors Gold Miners ETF (GDX) Will Continue To Track NYSE Arca Gold Miners Index
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