Miners Are Making An “Outside Reversal”
Miners are making an “outside reversal” today. That is when prices trade both above and below the previous day’s session. Similar to the day of the $25.93 high. Under normal circumstance, I would begin to enter long-positions today anticipating the bottom of common cycle low #1. However, prices could open dramatically higher or lower tomorrow, and therefore too risky for my liking.
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Note: Because miners dropped to a new low today prices will now need to close above today’s high ($24.68) to form a confirmed price swing. A confirmed price swing customarily signals the cycle low and gives us a defined stop loss.
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Hi Aleh,
Precious metals and miners are currently at a fork-in-the-road. The bullish view would have a low form around this level followed by a rally above $26.00, and then to new highs. However, the bearish view maintains a breach of the October lows followed by a 30% decline into January/February. The direction they take likely hinges upon the US Presidential election results. Therefore, I would hold off on investing in miners (GDX is a diversified precious metal mining ETF) until we know what track prices have chosen.
How can one invest in here? I am a novice so, I need someone to guide me through please. As per the article, I like it but the investment part of it, is it like someone buying shares with the mining company?