Gold Miners Going the Beetlejuice Route

It appears as though the gold miners are trying to say "200-day moving average" three separate times this year in order to get the "showtime" they crave in the form of a sustained breakout higher. 

Since bottoming in early-2016, gold bugs enjoy an exhilarating rally (indeed the strongest one since 2011) into the heart of last summer. Since then, however, they have reverted to their old quirky selves as being serial underachievers amid a steep correction and too many fits and starts to count. 

This morning, though, they are flirting again with breaching that 200-day line on the GDX, ETF for the senior gold miners. 

On the daily chart for GDX, below, you can plainly see the two prior instance in 2017 where gold bugs failed to adequately remount the 200-day to embolden buyers for a potential summer rally. To be sure, the 200-day remains clearly declining, which means the presumption is that rallies will falter until proven otherwise.

But with those 2016 lows still unscathed, this ought to be the golden opportunity for which bugs have been yearning. On social media yesterday and for Members, we looked at the individual miner IAG as an actionable long setup. IAG decisively broke up and out of its triangle setup this morning, along with a few other outperforming miner charts.

It will need to be a team effort if GDX is to sustain this move, but there are signs we should get more serious about them on this third test of the 200-day in 2017.