joe friday gold bugs index facing resistance april 15

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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 zoneĀ 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).