|Any type of really big move in this sector will result from Gold and the Miners taking out their 2016 and 2017 highs. For now, my expectations are more modest: I want to see the Miners, GDX and GDXJ, consolidate above their 200 DAY EMAs and NOT break down. |
The rally in 2016 was certainly nothing to sneeze at. But the rally only lasted 6 months. There is the opportunity in 2018 for Gold and the Miners to start a rally that lasts a year or two provided the above levels are taken out.
I don't think there are all that many sellers in this market. The selling has dried up and that's why GDX and GDXJ never broke below their December 2016 lows. And I should know since I have been very bearish for the most part on this sector since the July 2016 highs.
I continue to think it would be very healthy and breed a tremendous amount of confidence in this sector if the Miners successfully back tested their 200 DAY EMAs. Many have been burned before and are expecting the worst here, the gap and crap scenario again. I think a surprise might be in order.