Courtesy of Chris Kimble.
Mining stocks are facing an opportunity they haven’t seen many times in the past 8-years!
This 2-pack looks at the Gold Bugs Index (HUI) and the Gold & Silver Miners (XAU) Index over the past 12-years. Since the highs in 2011, both have created a series of lower highs and lower lows along each (1) line. The counter-trend rally the past couple of months has each mining index facing long-term falling resistance at each (2).
These resistance tests have happened a few times over the past 8-years, where breakout attempts have failed. If they would do something different this time and succeed in breaking out at each (2), both should attract new buying pressure and quality rallies should follow.
What mining stocks do here is one of the most important price tests in years!
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