GDX Gold Miners Weekly Chart H&S

Futher downside ahead. Back kiss of 200-week MA just occurred, now the trek to the H&S target at 38-40 can continue. Keystone likes a few select miners such as AEM, KGC, EGO and GSS, but if this chart plays out as forecasted, many other gold miners must have additional pain ahead.  For the H&S, the head is at 66, neckline at 52, which failed in March, this is a difference of 14 so 38 is the target.

Note how price made a new low two weeks ago at the 46.5-ish horizontal support level and bounced back up to back kiss the 200-week MA that had failed.  This back kiss was satisfied last week as you saw buoyancy in some of the gold miners play out.  The pink falling wedge typically sets up a bullish bounce point. This forecast a move down to 45-ish at a minimum.  When this occurs revisit this chart to see if positive divergence forms, or not.  The pink lines fo rthe indicators show the weak and bleak profile. Price dropped and the indicators dropped which means lower lows on tap, although the MACD histogram did show positive divergence which bounced price for the 200-week MA back kiss last week. The stochastics are oversold but it easy to see that the RSI, MACD line, stochastics and money flow could easily move down further to register oversold conditions; this means lower prices moving forward. The 20-week MA under the 50-week MA is very bearish.

Projection is for the H&S to continue to play out with price falling to the 38-40 area as the suntan lotion is smeared on your significant other, or perhaps as you prepare the Halloween costumes for the kids.  At any rate, the selling should finish up this year after the 38-40 target is achieved.  This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.