Gold Miners Eye Strong Bullish Message
Chris Kimble | Dec 03, 2018 04:31PM ET
2018 has been rough on the gold miners, which have declined by a large percentage. That decline has this key ratio testing dual support at the start of the week.
This chart looks at the GDXJ:GDX ratio (junior/senior miners) over the past 8 years. If you are bullish miners, you prefer to see this ratio moving higher.
The decline this year has the ratio testing the bottom of its 2-year trading range and rising support of the 2015 lows.
A rally off support at (1) would send a positive message to miners. If the ratio breaks above the top of its trading range and falling resistance at (2), it would send a very positive message to the hard-hit mining sector.
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