Bullish Inverse Head & Shoulders About to Push Miners Much Higher?

August 14th, 2013

by Chris Kimble

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Does the idea of buy low and sell high still make sense? If so, does a 50% year-to-date decline qualify as low enough to buy? Mining stocks have had a rough year for sure! The Miners ETF (GDX) was recently down 50% from its January 1 2013 price.

Over the past few months, the decline in GDX could have formed a bullish inverse head & shoulders pattern. The right shoulder might be in place. If this read is correct, a strong rally could be imminent.

For this pattern to work, GDX CAN NOT break below the right shoulder. If it does the pattern is a bust. Premium & Metals Members are long the miners due to this pattern.

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