Are gold miners now off to the moon again? Here are my thoughts:
The junior miners closed just below major resistance today. This rally is very suspect as it has been on declining volume and I believe gold bulls are being setup here for another take down, a bull trap! This is looking like the formation of a right shoulder to me. Yes, this 3 day rally appears to be bullish but we still have to look on the bigger picture which is bearish as GDXJ has been making a series of lower highs and lower lows since February. For now we are still stuck in the pennant. I want to see a breakout on big volume to the upside before I change my bearish thesis.
Yesterday we saw large selling on strength on the senior miners GDX. These often, not always, mark a top in the near term. Checkout my thoughts on GDX here:
https://steemit.com/trading/@traderyen/gdx-analysis-june-23-2017
Everyone is bullish now on the metals sector. Just look on the Steemit posts since yesterday, everyone here is also very bullish lol. I rather take the contrarian side. I remain BEARISH and my downside target for GDXJ is the 27 - 28 region. Lets see how this unfolds. Have a good weekend traders!
@traderyen