For two weeks now, I've been calling for Gold Miners to drop into what will become a recognizable 6-month cycle low. Silver has run like a dog off its leash in a late-cycle rally, but neither it nor the extended rally in miners have been confirmed by gold prices that topped 6-weeks ago.
Today I believe the HUI tipped its hand. Prices made an outside reversal candle (higher high and lower low than the previous session) while also managing to close below yesterday’s low. This development is an excellent opportunity for prices to begin dropping sharply, and a close below the 10-day moving average tomorrow will imply that prices have topped.
See the chart below for our May target:
If prices don’t close lower tomorrow, then today’s action was merely price closing the gap from yesterday. However, with gold's non-confirmation and negative divergences building a top in price, it is very likely.