Gold stocks have gone nowhere for the past eight weeks. But that's about to change...
When we last looked at gold stocks in October,
I said the benchmark Market Vectors Gold Miners Fund (GDX) may need to
consolidate for a few weeks before attempting a new rally.
That's exactly what has been happening. GDX has been trading back
and forth in a tight range – storing up energy for its next big move.
And the move is about to start...
Take a look at this chart of GDX...
GDX is in a consolidating-triangle pattern (the blue lines on the
chart). A consolidating-triangle pattern is a series of higher lows and
lower highs on the chart. This pattern typically occurs following a
large move in a stock, and it allows the stock to build up energy for
its next big move. (more)
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