Presumption of a Resumption
"Resumption" is word you may be hearing quite a bit these days, as some of the big winners from early-to-mid 2016 finally corrected into the end of the year. Now, however, the issue is whether we are seeing, in fact, a resumption of that uptrend.
Gold miners actually fit into that category, despite how alarming the price drops may have been to bulls buying into them since August. As evidence, considering the chart backing it out roughly one year ago.
On the GDX, ETF for the senior gold miners, daily chart, below, when we back it out since last January, there can be no doubt that some type of strong uptrend began. At issue now is whether it was simply a bear market rally (when you back out the chart since 2011 it shows a monstrous downtrend) or instead markets the beginning of a new gold bull.
And thus the "resumption" issue carries additional significance here.
Either way, GDX is clearing some short-term resistance this morning (light blue line, below) as the Dollar comes in. The major trend issue will be put to the test in terms of how far this bounce can go.
Some miners of my radar here for Members: DRD GOLD RGLD SLW.