Big Turn Higher for Miners and KWEB

I didn’t have time to write up a recap yesterday, but it was a stellar day for the precious metals and miners. Big day, big reversal, and more importantly than the gains, was the fact the HUI gold miners index closed above the breakdown level on the charts I posted over the last few days, the 247-248 level. This serves as confirmation that it was a “false breakdown”, which usually serve to washout out the last weakened longs before a sustainable bull move higher.

I also mentioned last week that James Flanagan at Gann Global was looking for this to occur, to confirm his analogs suggesting not only have miners bottomed out, but this could very well be lining up to be one of the largest rallies in the sector over the next couple years. At the moment, he is offering a discount to help people get on board for what he feels might be a historic move, so here is a link to watch his most recent video and more on the offer. I am in no way compensated by him or Gann, no affiliation whatsoever, I just appreciate his work. His video is very interesting to say the least, and if I recall correctly he has only issued 4 buy recommendations in the last 25 years with similar potential, so he isn’t shooting at anything that moves, so to speak. He waits patiently for the most optimal setups then acts fast and aggressive, or does nothing at all for long periods of time. My own research and charts confirm what his work suggests, that miners might be embarking on a huge move of several hundred percent over the next few years. All this is in regard to precious metals miners, and I will post a few charts of those indexes and etfs, but even China’s KWEB got into the action in a major way today, up 11%!! We made up over half out unrealized losses just today. There has been too much to cover in this one post, so I will try to post more frequently this week, maybe a couple posts each day until we cover everything happening. It will be more important to do so as we near our next action points, like the next time to add to positions, but for now they are taking off and we don’t like buying into strength in downtrends, which is the case right now. We will wait patiently for a pullback to make additional buys. We are happy to have been adding heavily late last week, turned out to be a fortunate decision.

Let’s review a few charts, first we can see KWEB with a close to ideal MONTHLY setup, note the stochastics not only oversold but now turned and trying to emerge from the zone. Recall that this was a signal we expected to be in for 6-10 months or so.

Now lets go to some miners charts.

SILJ etf WEEKLY chart with Fibonacci levels.

Moving further out, lets take a look at the GDXJ MONTHLY chart where the 50% Fibonacci retracement level has come into play. It’s already been tested and now starting back higher…

This GDXJ chart and the some other miner etfs that look similar are all suggesting huge potential upside over the long haul. It won’t likely be a straight up rocket ride, there will be pullbacks all along the way, but these charts tell us to be long and strong, we will try to hold on tight as the gains could be spectacular!

I will try to make more posts with charts of individual miners each day, to show readers what we are seeing, but it looks good. Even better, many people are now washed out and thoroughly sick of miners, so have no interest in buying ever again, just as they look to have put in a bottom. We are looking to add on dips, when and if they come, but miners are famous for flying once they get started, and not making it easy to wait for confirmation without missing a big part of the move. It’s the best of all worlds for a trader and investor, and it might turn out that the biggest risk is selling out too early!