Gold Miners at Key Support Marks

$XAU, $GLD, $GDX, $GDXJ, $SLV

After bottoming in November, GDX has underperformed and failed to make new highs while gold spiked above 1600 on geopolitical concerns.

The next few days are Key.

To maintain the potential for an immediate breakout, miners must hold support and turn higher.

Failing to keep this level and closing below 26.40 implies a deeper correction to around 24.00.

The pattern in Juniors resembles a Bullish rounded bottom. The current pullback should find support around 39.50.

Once complete, the uptrend should resume and break decisively above 43.00. To register a breakdown, GDXJ would have to close below 37.50.

From a cyclical outlook, our work suggests metals and miners should remain strong into February and March. A deeper breakdown seems unlikely, but it is something we are looking at daily.

Stay tuned…

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