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Gold Miners Bullish % Index: At Zero ?
August 10 ( 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 very little bullish conviction
ever as shown by the chart below.
That % indicator on Gold Miners Stocks is reaching again a
level atthe 0% treshold like in November and December 2014.
The 7 DMA ( Day Moving Average ) turned lower on May 14, indicating weakening
sentiment for the Gold Miners Sector as you may see in the chart below...
When that 7 DMA will turn upward, we can expect a correction within the Gold
Miners Stocks as history suggest - December 2014 as an example...
The GDM ETF reached the lowest price level ever ( on August 5 at 360.54 ).
And on a relative basis compare to the Mighty SP500, it is the cheapest ever...
At the time the Bullish Percentage Index of the Gold Miners Sector reached below the 25% zone, it broke the Support Trendline of a Falling Wedge as shown by the second chart below.
We are near a dead cat bounce but long term players will wait that we re back above the 50 DMA now at 463.47 Gold Miners Stocks ETF (GDM). ( Bottom Chart - 50 DMA - Red Trendline )
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: At Zero ? $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 - Red Line )
US Dollar Index ( DXY - Black Line )