Gold-Mining Stocks Go Back on Offense

After drifting lower over the past year, the gold-mining stocks are finally starting to regain some bullish traction. We're seeing a bullish reversal pattern develop in the gold-mining index and a break of the overhead resistance line. These technical changes suggest that the bulls are regaining control of this sector and that the recent improvements in gold prices have created a bullish turn in the gold-mining names.

The gold mining sector has underperformed gold prices on a relative basis during the long-term rally in gold. We're not sure if this divergence will persist, but in the short-term, the gold-mining names have regained some relative strength, and the potential exists for a "catch up" trade....316 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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