Update from Last Stand Hill

As I have mentioned before, I am looking at this recent weakness in the precious metals and miners to amount to a "last stand" for gold bugs to prevent another leg down in a multi-year bear market. 

If this is to be a major bottom for metals and miners, then the upside reversal we are witnessing at the moment, after the Fed Minutes, had better not be just another head fake for gold bugs. 

I have been quite quick with all long trades in this complex going back two years, as bear markets can often feature some of the most explosive snapback rallies. However, I have also had my eye on some potential major bottoming formations which, again, had better hold current lows in order to remain colorable scenarios. 

On the GDXJ daily chart, below, ETF for the high beta junior gold miners, we can see the upside reversal this afternoon. Bulls are going to need to see this strength largely hold into the closing bell, followed by upside confirming in the coming trading sessions above the 50-day simple moving average (dark blue line). 

Also note the weakness in the U.S. Dollar following the FOMC Minutes. 

If the Dollar can finally correct, gold bugs will have no excuse at this point not to salvage the miners, and can only blame themselves if these swing lows fail to hold.