Thursday's headlines from both Caterpillar (NYSE:CAT) and Fed Chair Yellen could easily have cratered the miners. But bids emerged into weakness in both instances, which represents a positive profile change from times past.
That said, despite near-term relative strength, the Direxion Daily Gold Miners Bull 3X ETF (NYSE:NUGT) must hurdle key resistance along the Aug.-Sept. resistance line, now in the vicinity of 3.30, which if accomplished, should trigger upside continuation that confronts more important resistance lodged between 3.50 and 3.70.
The 4-week price action has taken the form of a potentially powerful near-term-base formation that's putting increasing upward pressure on the resistance levels sighted above.
Only a sharp reversal and break of the Sept. 22 low at 2.71 will compromise the developing constructive set up.
