Loading ...GDX A/D line
Just a follow up on the earlier post from Ken. The A/D line in looks like it is in a similar position to the August of 2015 and we know what followed that as below. We had a quick jump in September and then a pullback and then we were off. No doubt there may well be a drop in the next few weeks, but from the last week in August we could make some gains.
In my humble opinion this still looks and smells like a bull market and we are building up to the next leg up, but it will want to try and throw us off first if it can 🙂
Updated the chart now to include the Chaikin Oscillator which is looking like it has stalled, but if it breaks the line then again that would be a positive sign.
Spot on OJ. The lower the A/D line the better. I would be worried if it was high – if you’re waiting for a big rally you need it to be low. This is perfect for a big launch.
Cheers NS and that certainly fits in to what happened in 2015/16.
I think the big difference between the two charts is the divergence. In 2015, the index was down significantly and the A/D followed as one would expect. The current chart shows the index staying fairly even while the A/D line diverges lower. It looks like it is telling us prices need to fall to catch up.
Okay thanks ken. Yes I think we may well see lower prices in the miners yet just to shake us out. I will keep some powder dry just in case, but I think by the end of August we will be going up again. If the SM has a set back in the autumn, then no doubt the miners will follow for a while, but then they may well both go up together into 2018. Then all bets are off as anything could occur as things start to unwind!
Updated the chart now to include the Chaikin Oscillator.