GDX Gold Miners Weekly Chart H&S

The H&S pattern we have watched over the last year continues to play out. Note that price fell intraday in May to almost tag the H&S target at 38 but recovered quickly into the current three-week rally move.  The red circles show, however, that there remains unfinished business lower. Price needs to come down for a matching or lower low in the 36-40 area so that positive divergence can form and set things up for a longer term bull market moving forward.

The stochastics are positively diverged helping to create the recent rally and also signals that a base wants to form. Looks like it is best to wait for 36-40 when the all-clear signal blows. The coming global intervention with QE3, LTRO3, China stimulus and more will send GDX higher. Perhaps the matching low will occur just as quantitative easing is announced. 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.