Gold Bears Not Drowning Yet

Today's action in the precious metals and mining complex is a good reminder in how much patience and restraint needs to be shown even when we think we have a major inflection point on our hands. In particular, the price action and volume patterns in the precious metals and miners in 2015 has thus far been quite promising. However, since the FOMC announcement the complex has come under selling pressure, spilling into today's session. As you know, my only exposure in the complex was individual miner SLW, which I sold for a small loss (under 3%) yesterday afternoon, in order to mitigate risk. Currently, the $20.40 level on GDX is my line in the sand to see if the complex remains overall constructive this year. Silver and other charts in the space have a similar look the GDX daily timeframe, presented below. If buyers can show up again to support a higher low in the face of what looks like a harsh sell-off, as they have done in recent months to imply a change in character for the better, then I am an interested buyer again. Gold bears have not drowned yet, and gold bugs would do right to not let them out of the water again in what are still risky long-term charts in the complex.