After the Fed announcement every single asset (apart from the USD) staged a rally. Some had a jump up and then drifted lower but others are still rallying very hard this morning. Precious metals are up between 4% and 7% this morning alone and gold miners yesterday had the highest volume day ever (using GDX, the ETF). Furthermore , the chart shows a potential reversal formation that if confirmed (ie gdx closes above 30) signals a move to 40, ie almost 40% higher from here. Given the absence of gold mining stocks from almost every portfolio, I wouldnât be surprised if the short covering/long buying pushes prices very high, very fast. A failure to hold the 25 level would signal a continuation of the bear market. http://pentothalta.blogspot.co.uk/
The only concern is volume. Right shoulder has too much volume. Anyway, if it breaks the neckline, still good chart for long.