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Gold Miners Indicator Flirts With Multi-Year Breakout

Published 12/06/2019, 03:52 PM
Updated 07/09/2023, 06:31 AM
XAU/USD
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GC
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GDX
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GDXJ
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Junior/Senior Miner Ratio

Are gold-mining stocks about to get a bullish signal they haven’t seen in years?

It is entirely possible.

The chart above looks at the Junior/Senior Miners ratio (GDXJ/GDX) over the past few years. Historically, when the ratio is heading up, miners tend to do very well.

The ratio has created a series of lower highs just below the falling line (1) since the summer of 2016 and is currently testing the strong falling resistance line and the June 2019 highs at (2).

If this ratio succeeds in a double breakout at (2), it will send the miners a long-awaited bullish message.

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