Traders have been bearish on gold and gold stocks since late October, the longest stretch in recent years. All such previous instances were followed by significant multi-week rallies. Here’s a daily chart, showing some divergence in RSI.
Here is GDX, the gold miner ETF, which looks good technically, as well as being cheap vs. the metal itself:
A caveat here is exemplified by the coffee futures market (see recent posts), which has steadily declined since a manic high 18 months ago. Gold and silver experienced a mania around the same time, which perhaps capped their 11+ year bull run. If that is the case, a situation like the present could actually resolve not in a rally, but in a crash, as crashes may develop from oversold and bearish conditions that would otherwise be bullish. For this reason, as well as the value discussion below, I would be careful about…
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Mission Mining Company 