Gold Miners: Remember the Alamos

The upside reversal in the gold miners today may very well get lost in the end-of-month shuffle we are seeing in equities. 

However, it is worth noting that gold miners are generally finding buying interest right where they absolutely needed to in order to keep the technical case afloat for a long-term inflection point dating back a few years. 

On the Alamos Gold weekly chart, below, for example, note how buyers likely needed to step at this moment in time in order to avoid losing a well-defined area of price support dating back to at least late-last year. Indeed, if sellers broke price down below the $6 zone, I suspect we would see a washout down to the early-2016 lows which are still very much in play as a major bear market bottom for the precious complex. 

Alamos is worth tracking as it is a top holding in the GDXJ, ETF for junior gold miners. Typically, the juniors will offer a good gauge as to the heath of risk appetite among the miners or lack thereof. 

And with the continued weakness in the U.S. Dollar as we head into another potential Fed rate hike, gold bugs had better take advantage of today's reversal and build a better case for a new bull market.