Get on Board – NOW! We’re On the Verge of a Major Bull Market Advance Across the PM Sector.

The charts below make it crystal clear that we are on the verge of a major bull market advance across the PM sector. While these charts are for the Market Vectors Junior Gold Miners ETF, what happens to the GDXJ has major implications for the whole sector, for the simple reason that it is not going up without the entire sector going up too.

The following article is presented courtesy of Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!),  www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and the FREE Market Intelligence Report newsletter (register here; sample here) and has been edited, abridged and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.

Maund goes on to say in further edited excerpts:

Most investors or would-be investors in Precious Metals stocks are so soured by the seemingly interminable bear market in the sector, that has gone on for 3 years now and been made even worse by its having unfolded against the background of a rising stock market, that they won’t see the major opportunity now being presented, even when it’s as plain as the nose on your face, which it is. This is a bit sad really, because huge profits look set to be reaped by those buying the sector now.

The 5-year Chart

The 5-year chart clearly shows an orderly 3-year long bear market, with a Head-and-Shoulders bottom forming over the past year that is now at the point of completion. The volume pattern is strongly bullish, with the persistent heavy volume all this year being a sign of a bottom, and the record volume last week as the price rose up out of the Right Shoulder of the pattern marking the start of an expected breakout drive out of the base area, and out of the downtrend – a development that can be expected to trigger a wave of buying and sharply rising prices – last week was only the beginning.

We can see the Head-and Shoulders bottom in much more detail on the 2-year chart. There was huge record volume on last week’s rise out of the Right Shoulder low of the Head-and-Shoulders bottom pattern, that caused volume indicators to spike quite dramatically. This is VERY bullish price/volume action.

The short-term 6-month chart shows that GDXJ has become short-term overbought after last week’s sharp rally, but that is not expected to stop it for long – after consolidation or a minor reaction it should continue to make strong gains.