As many of you know, I’m a long time advocate of buying support and selling resistance. However I also believe you need to take a multi-dimensional view of the technicals in order to put the highest probability picture together. Yes, GDX and gold are approaching, if not already hitting, resistance…and I expect some consolidation to occur at these levels but I am not selling this time. The structure is much more favorable for resistance to get taken out than what I have seen in years. I do have a fear of missing out here if I don’t have long exposure because the most bullish moves don’t let new money in easily. Everyone waits for the perfect pullback to jump aboard and before you know it you lost a huge chunk of the move. The absolutely best looking miner charts are silver miners and I plan on getting into some of these this week as long term position plays. CRB and oil are looking much more bullish too.

Yes, prices may get turned down here and I will be constantly looking for bearish structure to develop as a cue to bail just like I saw bullish structure develop early last week when I abandoned my bearish stance and I have 20% profits in a week to show for it. I won’t say that I think the bottom is necessarily in and frankly I don’t care if it is. This trade setup looks too good to pass up on even if it just lasts a week or a month longer.

Gold

Also, some GDX components have already broken resistance.

AU
NEM

Many silver miners look like this. Yes, this time may be different…..don’t get lulled into complacent trading.

AXU