This chart of Senior Gold Miners (GDX) from Marketsmith.com reflects it could be forming a “Head & Shoulders” topping pattern over the past couple of months.
This pattern could be about to send Gold Miners a rather bearish message. What would it take for this to happen?
The first step would be a break of steep rising support at (1), which so far looks to be taking place.
The next step to confirm a bearish pattern was in the making would be a break of “neckline” support, which is being tested this week at (1).
What GDX does this week at the neckline will go a long way it proving if an important topping pattern is in play.