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Twice over the past 7-years a support line and oversold momentum has been followed by two very strong rallies. In fact, rallies well over 100%! Two support lines dating back to 2002 were tested as support and relative momentum was hitting levels not seen in 15-years recently in the Gold Bugs index (HUI) in the chart above.
Premium, Metals & Sector members starting buying this index on this support line a few weeks. Since June 26th when the index hit support, GDX is up 33% in less than 60 days, due to support and oversold conditions. The 23% Fib resistance level is still a decent percent above current prices!