Miners are backtracking after yesterday’s breakout; prices may be attempting to fill the gaps before continuing higher. As stated in yesterday report: I like to see 3-closes above a resistance level to consider it thoroughly defeated. Prices closing back below the necklines today will raise a caution flag. Prices closing below their 50-day EMA’s next week would seriously dispute yesterday’s breakout.
GDX
It looks like miners are trying to close the gap from yesterday before heading higher. However, if prices close today below $22.35 (yesterday’s low) and then below the 50-day EMA ($21.72) next week, I’ll consider yesterday’s move a false breakout.
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