Dave Erfle Reviews The False Breakout And Corrective Moves In Gold, GDX, and GDXJ This Week
David Erfle, Founder and Editor of Junior Mining Junky, joins us to review the false breakout and recent correction in the precious metals sector this week, and what technical price levels he is now watching in gold, GDX, and GDXJ. We discuss how options expiration and a technical running of the stops was likely the impetus for the move lower, more so than the financial media narrative about it being because Jerome Powell is staying on as the Fed chair.
We review the length of other time periods of digestion, after big moves to new highs like we saw in August of 2021, and how we just need more time to finish out the cup & handle pattern. Dave is not ruling out more potential downside in the metals, but does feel most of the downside has already been priced into the mining stocks. We wrap up with his thoughts on which stage of mining stocks he feels would be ideal for new investors to the precious metals sector that want to start scaling into positions.