The Gold Miners are at a Critical Level

• Posted by Robert Sinn
• on June 28th, 2012

With gold trading heavy and back down to the low 1550s the gold miners ($GDX) have broken down from the bear flag that had formed over the last several days:

Click to enlarge

The 42.50 – 42.75 area will be a hugely important test for GDX to hold above:

 

It is worth noting that June – early August is a seasonally weak period of the year for gold mining shares (particularly for the juniors $GDXJ) due to lack of news flow and weak Asian gold buying. However, each year an important short/intermediate term low is put in place during July/August – if gold can once again find its footing these seasonal tendencies are worth keeping in mind.

 

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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