Gold Miners To Retest Resistance

The broad market has moved into a sideways trading range. This should last for a few more days at least. This is a healthy way for indices and stocks alike to work off their technically overbought condition and is a very bullish development. As we stated yesterday, stay patient and wait for the opportunities that are sure to arrive. Gold miners meanwhile, which have been looking rather weak lately, moved strongly off their long term trend and the XAU is ready to make another go at overhead resistance. We believe there is a very good chance that this time will be the one where the miners break out of their long term trading range and move into new territory. We won't know for sure until resistance is tested and broken, but right here is where risk is lowest. Once the price breaks out, it will be much harder to find an entry.