Gold has been working its way higher over the past 5 weeks and the gold mining stocks are reaping the benefits.
Today’s chart offers an intermediate-term look at the Gold Miners ETF (GDX) and its recent bull flag chart pattern and buy signal.
As you can see, GDX rallied sharply out of the coronavirus lows in 2020. That rally created the “pole” for the “flag” consolidation to take shape. This is what we call a “bull flag” pattern. Many strong breakouts occur from this type of consolidation pattern.
And here you can see it occurring with the Gold Miners ETF. GDX is breaking out of its recent consolidation at (1). A retest of the highs looks in order… and perhaps more. Stay tuned!
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