Gold Miners Poised For More Gains
After a rip roaring start to the month of October which saw gold miners (GDX) gain nearly 30%, we have seen a healthy pullback over the last few days:
Both the trajectory and volume of the pullback are indicative of a bull flag, today’s price action only serves to further confirm the bull flag interpretation.
Moreover, some mid-tier producers/explorers which we identified as breakouts last week have held much of their gains and remained above key support levels:
Endeavour Mining (EDV.TO)
Sabina Gold & Silver (SBB.TO)
The technical picture for the gold miners has drastically improved in recent weeks and the prospect of money continuing to flow into the space in the hope of getting into a sector which has bottomed along with bullish seasonality bodes well for further gains during the coming weeks (November is the 2nd best month of the year for gold miners historically).