by Clive Maund
Gold Seek
Whilst it must be frustrating for Precious Metals sector investors to watch Tech stocks continuing to “shoot the moon” while PM stocks have mostly done nothing, the chart presented below suggests that this situation won’t persist for much longer.
The 7-month chart for GDX shows it probably completing the Handle of a sizeable Cup & Handle continuation pattern. GDX has stayed above the support level shown as the Handle of the pattern has formed, which has allowed the earlier overbought condition at the start of the year to unwind and moving averages to catch up. Volume has eased over the past several weeks which is also a positive sign.