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Gold Stock ETFs (GDX/GDXJ) pushed above pennant/flag patterns of late and now are facing key resistance along line (1)! Gold ETF (GLD) looks to have broken to the upside from its multi-months sideways channel at (2). Silver continues to reflect relative strength compared to Gold. This breakout in GLD should be very good for Silver!
Game Plan…Suggested to be an owner of GDX/GDXJ earlier this week on the breakout. (see post here) Should a breakout above (1) take place, the miners should really run to the upside! Keep a 5% stop on the Gold miners ETF.