I wrote about a possible 2019 swing trade that I was looking at/starting on November 12th (click here to read that blog post). Long story shorter, I am playing for a big move higher in Gold Miner stocks in early-2019. I go through my thoughts in that earlier blog post, but one of the things that I was waiting for for additional confirmation was the completion of an ABC corrective move and a break of the downward sloping broadening price pattern.
I was buying GDX and HGU.TO in my stock accounts the past several days and yesterday I added WPM.TO on the flush after their somewhat disappointing earnings report. My audio alert went off this morning warning me of a first break higher out of the downward broadening price pattern. Here is the chart …
Gold Miner ETF (GDX) – 195 Minute Chart
A gap higher out of this type of broadening price pattern will almost always need to see some type of consolidation that would confirm acceptance by the market of that price move higher. I suspect that we spend at least 3-5 more days chopping around to see if price is really ready to begin moving higher. I am hoping that 2019 will actually work out nicely for gold/silver and the miners.
Cheers … Leaf_West