Bullish Inverse Head & Shoulders
About to Push Miners Much Higher?
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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.
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