Gold Miners; Bearish pattern at falling resistance this week!
Posted by kimblecharting on March 2, 2017 10:56 pm
Tags: Behavioral finance, Chart patterns, Economy, Finance, Financial economics, Market Sentiment, Metals, Miner, MIning, stock market
Categories: Behavioral finance Chart patterns Economy Finance Financial economics Market Sentiment Metals Miner mining stock market
The rally in the miners since the first of 2016, has the ratio testing the top of a 6-year rising channel of late.
To be long and strong mining stocks, one wants to see the ratio breakout of the red shaded falling channel.
The past three weeks, the ratio has created reversal patterns (bearish wicks) at falling resistance at (1). So far this week, the ratio is creating a large bearish reversal pattern. This is taking place just below 6-year falling resistance.
If weakness continues in the ratio and it breaks support at (2), it would be sending a risk off message to the mining sector.