Gold Mining stocks are at an interesting juncture right now.
Two popular Gold Miner ETF’s, VanEck Vectors Gold Miners ETF (NYSEARCA:GDX) and VanEck Junior Gold Miners ETF (NYSEARCA:GDXJ) have recently seen historical outflows, as reported by Sentimentrader.com.
It was reported that total outflows from GDX and GDXJ topped $800 million on April 26, the largest one-day outflows in history. Often times, panic-like selling marks a low (contrarian).
Turning to the chart for the Gold Miners ETF (GDX), we can also see that these outflows took place at a critical juncture for price. Although the long-term trend is currently down, the near-term trend is higher (see rising trend line below).
This trend line (point 1) may be a part of an ascending triangle formation (a bullish pattern). The pattern is narrowing right now and should see resolution soon. Questions: Did investors panic this week, possibly marking a low… or will price fall through the rising trend line. Stay tuned!
Gold Miner ETF Chart (GDX)
Thanks for reading.
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Twitter: @KimbleCharting
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