- Gold stocks are still correcting after soaring to seriously-overbought levels when their last upleg peaked in early August. Weak seasonals in the next month could accelerate that.
- The deceiving high consolidation after that euphoric topping failed decisively this week when GDX shattered its 50dma, proving this sector’s correction is alive and well.
- Only about 15% so far, it is likely to extend to 25% to 30% before overbought technicals are worked off and sentiment rebalanced. Seasonality is likely to exacerbate remaining selling.
For further details see:
Gold-Stock Seasonal Plunge