Loading ...The Gold Miners Bullish chart
The Gold Miners Bullish chart
Going back to Q3 2017, we have not seen a lower reading (with the exception of Covid – March 2020 low).
This is looking primed and ready to go off the rails.
Looks like still a bit more downside, but not much more …
It could go to zero. Or it could bounce significantly only to head back down to make a lower low.
It’s certainly not a bad timing indicator, but its probably good only for a very short term trade. And even then, the indicator could always go to zero before it bounces, which is probably the lowest risk time to get long.
My cynical guess is even if there is a large bounce in the miners (say a 30% rally from here), they will probably eventually come all the way back down to retest the low months from now. There is way too much chart damage for the bull to just resume in a v-shaped fashion and never look back. There will be a prolonged basing period in all likelihood over the next year.
While your description of the chart damage and need of prolonged basing makes sense. This is a totally manipulated market. The physical metals. So while it could play out the way you say, I wouldn’t count on it. Either the manipulation continues or it ends. If it ends(granted nothing to explain why it would) the upside will be straight up and unrelenting. The charts don’t work in a totally manipulated market.
“My cynical guess is even if there is a large bounce in the miners (say a 30% rally from here), they will probably eventually come all the way back down to retest the low months from now. There is way too much chart damage for the bull to just resume in a v-shaped fashion and never look back. There will be a prolonged basing period in all likelihood over the next year.”
Spot on, and hardly cynical.