The 6-pack below updates chart patterns from the gold and steel sectors. We share it weekly with our Metals and Premium members.
Specifically, we keep an eye on gold, Gold Miners (GDX and GDXJ), the GDXJ/GDX and gold/USD ratios and Steel ETF SLX.
Over the past year, gold, GDX and GDXJ have created a series of lower highs, which are being tested for each of these at (1).
When it comes to being long/bullish miners, historically bulls want to see the GDXJ/GDX ratio heading higher, reflecting relative strength from junior miners over the senior miners. This ratio has been weak of late and is a large percentage below highs hit just 1 year ago. Miners bulls want to see a breakout at (1) for this ratio to send a quality bullish price message to the miners.
The gold/USD ratio is breaking above highs of this past year and so is SLX, each at (2), which is historically bullish for both.
Gold and miners bulls keep your eye on the lower highs at each (1). If breakouts take place, I suspect bulls will love what follows.