Courtesy of Chris Kimble
I have shared a few times over the past two weeks that metals looked vulnerable to a decline (see post here), since key resistance was at hand. In the past few weeks the Gold stock etf (GDX) and the Silver stock etf (SIL) have both declined almost 15% off of their recent highs. Is a 15% decline enough? See below for an update.
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The key reversals that took place in the metals and metals stock complex around 11/8, suggested that something key was taking place. Most often “tops are a process and bottoms are events!” Relative weakness is taking place in these two ETF’s, considering that they are both down almost 15% from their highs and OVER 10% in the last 30 days…(see chart below)
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If the patterns have anything to say in regards to Gold and Silver stocks, they are suggesting even lower prices are ahead! Since short-term support is giving way, the potential for the decline to pick up speed looks to be at hand.
