MUX McEwen Mining Weekly Chart Downward-Sloping Channel Oversold Falling Wedge Positive Divergence

Gold miners have been bludgeoned over the last couple years. The parabolic rise in the US dollar has crushed the gold sector. The US dollar will need to pull back for a rest and gold miners should receive a reprieve. Keystone has been in and out of MUX and continues to like it as a LTBH (long term buy and hold). MUX has crumbled down to a new low near one dollar. Keystone's 80/20 rule says 2's lead to 8's so once 1.20 failed a move to 0.80 is a possibility. Price lost the sideways channel at 1.75 and is moving through the downward-sloping channel currently.

The charts are setting up with positive divergence. The daily chart is positively diverged. 
The weekly above is possie d except for the MACD line over the last two months remaining weak and bleak. Thus, a bounce would be expected but price likely wants to come back down again for one more look and that should be it for a firm base and perhaps the lowest price print for MUX moving forward. MUX is another knife-catch so caution is required and allowance should be made to scale-in if price continues to drop. Price violated the lower standard deviation band so a move back to the middle band, at a minimum, should occur. Instead, price rolled back over to the downside. The middle band at 1.96 and falling is in play.

The expectation is for MUX to base, stabilize and recover moving into and through 2015. The above technical analysis holds generally true for most gold miners. The GDX and GDXJ ETF's hint at a sideways path ahead. Keystone opened a long position in MUX on Friday. 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.