For those who trade in gold and silver resource stocks, looks like we are at a major inflection point. The blue EW looks to be the most plausible path for GDX while the red is still a viable alternative. The small blue diagonal box will tell us a lot as this is the inflection point IMHO. A break above this and the trend line would indicate the bottom is in ...
When this ratio is falling, the Gold Miners Stocks are stronger relative to the S&P 500.
Note how low this ratio was at the end of the last big metals rally in 2011-12 period.
You can also see the 2016 metals rally (ratio falling) quite clearly here. If in fact
we have double topped in this ratio, then things should be looking UP for the metals.
The next thing ...
POTENTIAL drop in gold prices after midterms and FOMC tomorrow based on bullishness in the broader indexes and drop in vix. Short GDX via a long position in DUST stop loss at todays high of 19.66 as bearish momentum needs to be confirmed today to hold position tomorrow.
this falling wedge can be a great opportunity to invest we can open long positions as soon as the price breaks the upper level, the take profit will be the top of the wedge projected with a horizontal line.
It is decision time for GDX. If it breaks the red line, the bear will continue, so higher highs (and ASAP!) are required to support the weak bullish case. Note the MACD bearish crossover.
Overall, it seems to support the bearish case for gold.