Gold Miners Are Slipping Below Steep Rising Support
Chris Kimble | Aug 31, 2016 11:00AM ET
Gold miners have had a great run so far this year. But as of recently, they may be losing grip on key support.
Below looks at the Philadelphia Gold/Silver-mining index over the past decade.
I like to keep an eye on XAU, which is the oldest mining index in the states and includes both gold- and silver-mining stocks.
The index has had a great rally, hitting its 61% Fibonacci retracement ratio and falling resistance, where it appears to have pulled a reversal pattern.
Currently, the XAU index is attempting to break support of a rising wedge pattern, just below this key retracement level. That small break could be important as weekly momentum is now at the highest level in more than a couple of decades.
Finally, XAU just saw its largest 52-week rally in its history.
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