CLICK ON CHART TO ENLARGE
When looking back on assets to avoid over the past 5-years, mining stocks sure come to mind, as they have done terrible, losing nearly 80% of their value.
When looking back over the past couple of months, they have been one of the best assets to own.
Earlier this year, the Gold Bugs index created a series of lows around the 100 level. The Gold Bugs index created a reversal pattern (bullish wick) at (1) above. Following this reversal pattern, mining stocks blasted off.
Now the Gold Bugs index is testing a triple resistance zone at (2) and could be creating a weekly bearish reversal pattern (bearish wick).
Joe Friday Just The Facts…Dangerous place for mining stocks, should a reversal pattern take place at (2).