Saturday, July 20, 2013
Gold & Metals Sector Showing Significant Positive Momentum Divergence
The gold miners and metals stocks are finally looking like they're going to move off of their multiyear bottom. The GDX is showing huge positive momentum divergence and the money flow indicator is becoming less negative. We could see a multi month reverse head and shoulders pattern form on the weekly chart. ABX, Canada's largest gold producer, has been among the most destroyed by this sell off. I think it will move above $20 shortly.