“After years of disappointment, bullish miner investors should be treated to some fun upside-action if the pattern breaks out to the upside. The best plan for a pennant most often is to set back and watch for the breakout and then follow it. This pattern would appear investors won’t have to wait long for the outcome,” adds Kimble.
Some investors are not waiting around for bullion to firm as highlighted by the nearly $424 million in outflows from GLD this month. However, just $78 million has been pulled from GDX while GDXJ has added $45.1 million in new assets.
Gold Bugs Index
Chart Courtesy: Kimble Charting Solutions
Tom Lydon’s clients own shares of GLD.