Gold Miners At Huge Resistance, This Is Not A Buy

Gold miners have done astonishingly well in the first 6 months of 2016. Admittedly, we did not see such a huge move coming, for sure as the price of gold was not able to move above its February high for almost 5 months.

However, we believe gold miners are ready for a serious correction. As seen on the chart, the top of a huge resistance area is now reached, and that does not bode well as this price point has been resistance since 2013 (after the big collapse of precious metals).

Though it seems enticing to go long at this point, as mainstream media is so excited about gold, we believe that gold and miners are about to take a rest. Be careful with long positions in the gold mining space at this point!

gold_miners_29_June_2016

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Louis Jackson 8 years ago Member's comment

I generally agree that at this point they need a rest. But gold and especially silver are cranking up right now. I could see this having a bit more upside before any correction sets in. The miners have been virtually impossible to predict this year.