Above looks at this ratio, which highlights that a multi-year narrowing pennant pattern has been forming (higher lows and lower highs).
Should this ratio breakout, it would send a short-term bullish message to the out of favor mining sector.
Below looks at the spread between the S&P 500 and Gold/Silver Index (XAU) over the past 7-years
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If the GDXJ/GDX ratio breaks out, the odds increase that the large spread between the S&P and the XAU index will narrow!
If you are interested in short & long-term investment solutions for Gold, Silver, Miners, and Copper, being a Metals Member could become a big advantage for you!
The VanEck Vectors Gold Miners ETF (GDX) rose $0.05 (+0.27%) in premarket trading Tuesday. Year-to-date, GDX has declined -21.17%, versus a 8.86% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.