Looking Good High Up

Many a rally in the precious metals and mining complex has been faded for a good while now.

So with this morning's gap up across the board in that sector, the easiest thing to do would at least be a bit skeptical of the sustainability of the move.

Nonetheless, that may be precisely the grounds and market sentiment for a true breakout. And an open mind to that scenario should be maintained. 

On the 15-minute chart of the GLD ETF, for gold itself, below, note the "high and tight" consolidation after the strong buy volume advance this morning. Typically, this is bullish behavior insofar as the gold market failing to given back much of the gains and digesting the move in a healthy manner, thus far. 

There is still much more work to do to cement a durable bottom in the entire precious complex. But so far the view is looking good after this morning's gap up.