GDX Gold Miners Weekly and Daily Charts Downward-Sloping Channel Falling Wedge Positive Divergence

Gold and the gold miners went their separate ways over the last year. The gold miners have been beaten lower for over 18 months since the mid-2011 top. The news is more rosy for the miners than the gold and silver charts previously posted. On the weekly chart, the green falling wedge, oversold RSI and stochastics and positive divergence want to bounce price and lead a recovery in GDX.  Likewise, the pink falling wedge on the daily chart is a close-up view. There may be some unfinished business as price bases but the charts are very favorable for the gold miners moving forward. The daily chart shows some near term downside momo (short red lines) most likely due to the daily beating by analysts late to the game, jumping ship when they may as well now stay the course. Analysts missed the move from over 54 to 35 right now but these levels are constructive for building a base.

Interestingly, the gold miners may be leading gold.  The GDX dropped under its lows last summer and has paid its dues. Perhaps gold and silver need to print some lower numbers to set up positively as well. The pink H&S on the weekly chart shows head at 65, neck line at 50, so the target is 35, now achieved. The neon green H&S is ominous which says troubled times may occur in the future but this can be reassessed in the summer. Current projection is for GDX to bounce from these levels and recover higher. This same technical analysis holds for ETF's such as GDXJ, the junior gold miners, NUGT, the 3x gold miner bull, and others. 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.