The gold trend felt a sense of urgency and prices attempted to recapture the $1320 level this morning. Silver and miners rallied, but the early morning blitz appears to be fading. The next 48-hours are crucial. Metals and miners need moderate to strong closes today followed by meaningful upside follow-through tomorrow to restore the bull flag – failing to do so would set the stage for a potential breakdown later this week.
-GDX- Miners must have a moderate close today (preferably above $22.20) and decent upside follow-through tomorrow to restore the bull flag potential. To establish a genuine breakout, I’d need to see a high-volume close above $22.70. Closing below $20.00 today would set the stage for a decisive down day tomorrow or Friday.
The hourly chart of gold and silver prices spiked higher, but it looks like the bears successfully defended the upper pattern boundaries. It looks like prices are rolling over.
I’ll update members before the close.