Markets Update… Precious Metals Yellow Flag

GDXJ daily:

GDX daily:

It was actually this old daily chart for the GDX which first got my attention. You can see the H&S top that was made back in 2016 which reversed that massive impulse move off the 2016 double bottom. That 2016 high created that massive brown shaded S&R zone which held resistance until the GDX finally took it out back in the Spring of this year. From a Chartology perspective that brown shaded S&R zone should hold support which it did initially on the breakout and backtest. Rule #1 never discount an H&S top no matter how bullish one may be. This is our conundrum.

As I stated earlier I’m seeing a possible disconnect between these short-term charts above and what the longer-term charts are showing which at the moment makes no sense. The main thing we have going for us is that we are aware of what is possible while most analyses are only looking at the bullish side of the market. Now we wait to see what the market gives us next to work with. All the best…Rambus

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