Miners formed bullish engulfing candles yesterday, and they could be attempting to bounce. Closing above yesterday’s highs will confirm that a short-term rebound has begun. Failure to close above yesterday’s highs will lead to another 1-3 day decline.
XAU- The XAU formed a bullish engulfing candle. A daily close above 80.01 will confirm that a short-term bounce has begun. If prices bounce, the rebound could last anywhere from a few days to a week or two. Nevertheless, prices should not exceed the 200-day MA. Failure to close above 88.01 will lead to another 1-3 day decline and a test of 77.50.
GDX- Prices formed a bullish engulfing candle. A daily close above $21.82 will confirm that a short-term bounce has begun. If prices bounce, the rally should not exceed the 200-day MA. Failure to close above $21.82 will send prices down to test the $21.00 level.
