Time to Start Popping

A plethora of precious metals miners report earnings in the next week or so, placing an even bigger premium on the current technical juncture in which the GDX (ETF for senior gold miners) currently finds itself. 

We previously looked at the daily timeframe, updated below, and inferred from the technicals that both the 200-day simple moving average (yellow line) was even more significant of a reference point for gold bugs to conquer than usual. And that sure is saying a lot, since even non-technicians will sneak in a look at the 200-day when indecision lurks. 

Beyond that, the 200-day basically no coincides with the $23 level, another clear hurdle for gold bugs to clear in order to turn the tide of what has now been a year-long correction after a brilliant rally for the first half of 2016. 

Simply put, the coming August-October interval can often be a time where equities pause or correct, where gold miners can potentially reap the benefits of a little fear. Against the backdrop of a uniquely well-defined technical setup, August is the time for miners to start popping, and the coming barrage of earnings reports from them would be an ideal starting point.

We have been playing an IAG long inside Market Chess Subscription Services over the last week or so, as that has been one of the cleaner charts in the complex. But we need to see more and more charts like IAG and RGLD, with technicals steadily improving and price back above all daily chart moving averages. 

Elsewhere, the Dow divergence in equities seems to be even more pronounced today, as small caps are red while mainstream media sources celebrate the Dow's new highs.