Miner Suspicion

0 miner surprise

On Wednesday the Miners broke bullishly from being squeezed by the 50 DMA & the 10 DMA. The Miners broke above the 10 DMA, 50 DMA & the 200 DMA. They also closed above the upper daily cycle band to signal an end to the daily downtrend.

1 gdx daily short term

This breakout reminds me of the June breakout.

2 gdx longer view

June 6th the Miners broke above the 10 DMA, 50 DMA & the 200 DMA. They also closed convincingly above the upper daily cycle band to signal an end to the daily downtrend. But the Miners delivered a bearish signal on June 6th by printing 356 million in SOS. That eventually lead to the Miners dropping over 9% and printing an extended 45 day DCL on 7/10/17.

This makes me suspicious of the current breakout.

3 gdx sos

Prior to Wednesday there had been 897 million in Selling On Strength. Wednesday the Miners printed another 289 million in SOS. This has me suspicious of a repeat performance.

4 gdx trend line

While the Miners did print a higher low on July 10th, I will need to see a clear and convincing break above the declining trend line to be persuaded that the Miners are in a new daily uptrend.

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2 thoughts on “Miner Suspicion

  1. Thanks for the interesting “Head’s up” on GDX. I still feel the pull of the ICL but we shall see.

    Today was GDX day 13 by your count, I think you were thinking of Gold’s count when you used day 12.

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