“The vast majority of investors are now bullish on the PM sector, with a current 89% bullish reading, after 100% at the start of July, as revealed by the Gold Miners Bullish % Index shown below. Although it has eased somewhat, the current reading is still very high and increases the risk of a significant correction soon. Holders of PM stocks at this point can either take some profits here, or buy on a dip to the lower channel boundary, with a close stop beneath it, and take profits in a more serious manner if the clearly defined uptrend fails.”

“We’ll start by looking at gold’s latest charts beginning with the 3-month. On this chart we see that gold made only very limited gains following its Brexit vote surge, and it has just failed at resistance at its early July high, with a sizeable down day on Friday, so that it is now stuck in a rectangular trading range, which could be either a continuation pattern or an intermediate top.”

….view all charts and analysis HERE

…related: A clear, concise and gripping interview with the highly regarded Greg Weldon who has been so right on Precious Metals –