Gold Stocks Review

The force behind the trend is most important. Watch the fill of the August 4th trading gap. A fill on shrinking volume would be considered a bullish setup.

Gold Miners Index (GDX):


Those constantly looking for reasons to sell will find no shortages of opinions or analysis that will encourage them to do just that. Yet, the one opinion that matters most, the market, is often ignored.

The positive divergence in REV(E) from December 2009 to June 2010 illustrates the building energy behind the trend in the gold shares. Technical analysis is the study of time and pressure. As long as pressure builds, price will move when time is right.

Gold Miners Index (GDX) Monthly Trend: