Breakout of Gold Miner Pennant Pattern Imminent: Will It Be A Big Move Up – or Down?

When it comes to investors being bullish on the gold miners ETF GDX, they are hard to find, as outflows are hitting levels never seen.

Below looks at inflows/outflows from GDX over the past 11-years. As you can see, investors are bailing out of GDX like never before!

CLICK ON CHART TO ENLARGE

Inflows and outflows are one thing, price is another.

Below looks at the price patterns of GDX over the past 8-years:

CLICK ON CHART TO ENLARGE

Pennant patterns:

• tend to frustrate both bulls and bears, as no trend is in play,
• often cause investors to back away due to the choppy nature of the pattern,
• aren’t good about tipping one off to the future direction of an asset but
• are good from this perspective; when a breakout from the pattern takes place, follow it, because big moves often follow.

Joe Friday Just The Facts:

GDX is going to breakout of this pattern and the odds are good a big move will follow. This will lead to an outstanding trade opportunity. Are you ready for it???

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