The 6-pack below updates chart patterns from the Gold and Steel sector that we share often on this blog. It is shared weekly with our Metals and Premium Members.
The 6-pack below looks at Gold, Gold Miners (GDX & GDXJ), GDXJ/GDX ratio, Gold/US$ ratio and Steel ETF (SLX).
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Over the past year, Gold, GDX & GDXJ have created a series of lower highs. “Lower highs” are being tested for each of these at (1).
When it comes to being long/bullish miners, historically bulls want to see the GDXJ/GDX ratio heading higher, reflecting relative strength from junior miners over senior miners. This ratio has been weak of late and is a large percentage below highs hit just 1-year ago. Miners bulls want to see a breakout at (1) for this ratio to send quality bullish price message to miners.
Gold/US$ ratio is breaking above highs of this past year and so is Steel ETF (SLX) at each (2), which is historically bullish for both.
Gold and miners bulls keep your eye on the lower highs at each (1). If breakouts take place, I suspect bulls would love what follows!