Gold Miners - the cards stacked up against, to fall...
It’s done.
With gold being on the retracement, and perhaps a large one at that, the gold miners (ETF, GDX) is under siege and under pressure to retrace hard.
Technically, despite a long tail, GDX clocked a lower low, which broke down of a support line briefly. The MACD is clearly broken down ahead of price.
So, what is the risk?
Plenty... the miners tend to do well under conditions where gold as a commodity is in a bull rally, borrowing rates are low, and particularly, that equities are rallying.
The S&P500 as well as major indices like the Nasdaq leading the downdraft of late, accentuating the risks to the Gold miners.
Given all the factors, it would appear an insurmountable effort for the miners to stage a huge rally out of the technical backdrop. Not that it’s impossible, but it has very low probability.
With gold being on the retracement, and perhaps a large one at that, the gold miners (ETF, GDX) is under siege and under pressure to retrace hard.
Technically, despite a long tail, GDX clocked a lower low, which broke down of a support line briefly. The MACD is clearly broken down ahead of price.
So, what is the risk?
Plenty... the miners tend to do well under conditions where gold as a commodity is in a bull rally, borrowing rates are low, and particularly, that equities are rallying.
The S&P500 as well as major indices like the Nasdaq leading the downdraft of late, accentuating the risks to the Gold miners.
Given all the factors, it would appear an insurmountable effort for the miners to stage a huge rally out of the technical backdrop. Not that it’s impossible, but it has very low probability.
