Bullish Inverse Head & Shoulders
About to Push Miners Much Higher?
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
Does the idea of buy low and sell high still make sense? If so, does a 50% year-to-date decline qualify as low enough to buy? Mining stocks have had a rough year for sure! The Miners ETF (GDX) was recently down 50% from its January 1 2013 price.
Over the past few months, the decline in GDX could have formed a bullish inverse head & shoulders pattern. The right shoulder might be in place. If this read is correct, a strong rally could be imminent.For this pattern to work, GDX CAN NOT break below the right shoulder. If it does the pattern is a bust.
Premium & Metals Members are long the miners due to this pattern.
For information about Kimble Charting Solutions, send an email to email@example.com.