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Gold/Mining/Energy : McEwen Mining
MUX 18.07-1.4%Nov 3 9:30 AM EST
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From: Robov6/20/2014 7:20:38 PM
2 Recommendations

Recommended By
bostma
Rich Wolf

   of 24513
 
Here is the updated chart of the weekly GDXJ and our perfect Inverse H & S. As you can see we pierced the neckline and retraced just as I expected. But that's just fine as it has not invalidated the pattern. Have a look at the volume. Staggering and record levels. This continues to play out just as it should in that each week since coming off that right shoulder bottom the volume has markedly increased. RSI sits at 56 which still leaves room to move higher, although the daily was overbought but dropped back down to 65 with today's sell off. We filled about half the large gap up from Thursday so a further drop to fill that gap and work off a little more of the overbought conditions will be healthy. Ideally what we want to see from here is a move and close up through the neckline and then often times you'll have a retracement back down to test the downtrending neckline, on lower volume, as a support level. This will offer an excellent opportunity to get onboard for the next move higher from there. There is a small daily gap between 37.54/63 but IMO if the momentum continues to the upside it will likely be left behind, although you can never say never. That said we have 8 or 9 upside gaps that were left behind once the bull market ended on 2011 and the downward momentum started. Both gold and silver need a breather too as both are overbought with silver being extreme and both now sitting outside the upper Bollinger bands. These will want to get back within the bands by either dropping back down or moving sideways. My guess would be back down so the RSI can drop back down below 70.

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