Very good news for Geologix...
With gold stocks at the by far most oversold situation ever the probablility of a massive move in the opposite direction is of high probability. Right now we can see signs that this type of move can be imminent. Firstly, in the gold stock index HUI there’s a large Head & Shoulder pattern formed, almost complete with the right shoulder about to end:
In the S&P 500 vs Gold stock index (GDX) a similair pattern exist and as you can see a breakdown in this formation has already happened:
Head & shoulder formations are very powerfull and should in my opinion not be ignored, they are quite accurate historicly. I believe these formations signal that a massive move is about to begin, and this coming move might be the most spectacular we have ever witnessed in this sector.
At the same time, the money supply has reached the highest growth rate since 2008 signaling a new inflation cycle is emerging, this is maybe the most bullish sign (from a fundamental perspective) that the gold stocks will start to rise rapidly. So both from a technical and a fundamental perspective it’s looking very bullish indeed.