CHART: Gold stocks are gearing up for a big move…

From Chris Kimble at Kimble Charting Solutions:

When it comes to investors being bullish Gold Miners Fund (GDX), they are hard to find, as outflows are hitting levels never seen. Below looks at inflows/outflows from GDX over the past 11-years. As you can see, investors are bailing out of GDX like never before!

Inflows and Outflows are one thing, price is another. Below looks at the price patterns of GDX over the past eight years…

Pennant patterns tend to frustrate both bulls and bears, as no trend is in play. These patterns often cause investors to back away due to the choppy nature of the pattern. Pennant patterns aren’t good about tipping one off to the future direction of an asset. They are good from this perspective; when a breakout from the pattern takes place, follow it, because big moves often follow.

Joe Friday Just The Facts: GDX is going to break out of this pattern and the odds are good a big move will follow. This will lead to an outstanding trade opportunity. Are you ready for it???

If you would like to stay on top of this pattern and how we are going to play it, we would be honored if you were a Premium or Metals member.

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