The shares of the senior gold producers continue to exhibit impressive resilience as they threaten a breakout from a 15-month head & shoulders bottom pattern:

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GDX_Weekly_7.21.2014

There is ample reason for optimism that the 2nd half of 2014 could be even better than the first half for the gold miners – the top 3 reasons gold miners are ready to rip:

  • August & September are historically the most bullish months of the year for gold and the gold mining space.
  • The gold miners have vastly outperformed the shiny yellow metal in recent weeks. Such outperformance by the miners has historically boded well for future performance in the space.

GDX_vs._Gold

  • Even after the recent rally portfolio managers (PMs) still remain underweight the precious metals space – a technical breakout might be the catalyst needed to drive PMs back into mining shares in a big way.