Gold Miners Flirting With Key Trendline

Today’s chart of the day focuses on one of the most depressed and beaten down sector: gold miners. The bear market that started in September 2011 is about to “celebrate” its four year anniversary.

Gold-Miners-vs-200-MA-1996-2015

So far the Gold Mining sector has failed to rebound from the critical support level at 160 on the HUI Gold Bugs Index chart. While the price is still holding support, it has not yet moved above the crucial 200 day moving average (red line on the chart).

I am not a technical analyst, but basic chart analysis shows that major rallies usually occur when price is above, and not below, this trending line. Therefore, keep a close eye out on the miners in the coming weeks as they flirt with this important price level.

By Short Side Of Long

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