The Aftermath for Gold and Gold Miners

Considering the ferocious rally in copper this week, one would think gold and its derivative miners could have fared better or at least held the line. Heck, even FCX, a rather visible copper miner which has been on a tear, has exposure to gold. 

Instead, the gold complex was properly punished each step of the way after an initial post-Trump-victory pop. 

At issue now is whether the space is overdone. When we view the space since the beginning of the year, the case for a long-term bottom is still colorable. But gold bugs do not want to see too much more ground relinquished from here on in, with the election aftershocks starting to abate. 

On the GDX (ETF for senior gold miners) 30-minute chart, below, we can see the action for the week as it winds down. Clearly, this has been a shellacking. 

However, this morning some signs of buyers giving it a shot (arrows point to a "long-legged doji" reversal candle). If we see a push over $22 today, it may provide at least a short-term scalp on the long side. 

Overall, the next few weeks sets up an intriguing scenario as to whether gold and miners can continue their progress in 2017 and offer actionable swings for longs looking at a new bull run. Losing $20 on GDX on a weekly closing basis anytime soon would surely throw a wrench in that plan.