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Gold Miners Bullish % Index: Overbought Zone ?
October 21 ( From Stockcharts )
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The main technical indicators like the moving average of the
Bullish Percentage Index of the Gold Miners Sector are turning
with a strong bullish conviction as shown by the chart below.
That % indicator on Gold Miners Stocks is reaching again a
level over the 40% treshold like in February and May 2015.
The 7 DMA ( Day Moving Average ) turned higherer on September 10,
indicating strengthening sentiment for the Gold Miners Sector as
you may see in the chart below...
The GDM ETF reached the lowest price level ever ( on September 11 at 348.55 ). And back then on a relative basis compare to the Mighty SP500, it is the cheapest ever...
We are near a tiny correction on the Gold Miners Stocks ETF (GDM) as the Sentiment is too Bullish.
( Chart Below - Black Trendline - Ellipses )
In fact, the GDM ETF is a Macro Reverse play of the US Dolllar Index (DXY) as shown by the third chart below.
Gold Miners Bullish % Index: Overbought Zone ? $GDM, $GLD #Trading #gdm #gold
SP500 Gold Miners Bullish % Index ( Top Panel - Dots - Red Line )
7 DMA ( Blue Line )
GDM ETF ( Bottom Panel )
Gold Miners ETF ( GDM - Candles )
US Dollar Index ( DXY - Black Line )