$XAU - daily gold & silver mining index - the rising channel
Here is the popular mining stock index with its very pretty rising channel formation. You will notice how we broke out of this channel in early January on strong volume. We’ve also finished what looks to be a counter trend rally up to the bottom of the channel (and the 50dma) where we met resistance about a week back. There is a good chance that we will back test this channel again from the bottom, but until we make it back into the channel, we remain on high alert. This index is a leading indicator and needs to be monitored closely for a move either direction.
Also make sure to watch the 10ema, 50dma and 200dma on this index, not pictured above, for guidance.
