Loading ...So, the big picture is strongly bullish, but, barring the Iran situation dramatically worsening, it looks like a period of consolidation /reaction is likely before further significant gains are made. If gold and the sector do react, it is considered unlikely that it will be by much and any such reaction may be used to add to positions across the sector.
It was rather odd late last week that while gold tried to break higher but failed to, the PM sector forged ahead on Wednesday and Thursday, as we can see on the latest 6-month chart for GDX. Normally, stocks rallying leads to gold following suit, but gold’s price/volume action was not bullish for the near-term, and nor was the action in GDX on Friday, which saw a bearish Harami pattern appear, which is where a large candle the previous day is followed by a small one which fits inside the 1st one This is bearish and usually marks a reversal, and thus probably marks the start of a corrective phase
