If someone wants to buy and hold shares of gold mining companies, some prefer to see the younger miners because they are stronger than the older miners. Since 2011 Junior/Senior Miners Ratio (GDXJ / GDX) continues to pose a number of lower high and lower lows.
The first rally in 2016, is testing the top of the 6-year-old growing channel in recent years.
To be long and strong mining shares, who wants to see the ratio of red-shaded channel breakout fall.
Over the past three weeks, the attitude creates a reversal pattern (bearish wicks) at the drop of resistance (1). So far this week, the relationship creates a large bearish reversal pattern. This is slightly below 6 years of resistance fall.
If the weakness continues in the ratio, and it breaks on the support (2), it will send the risks of posts in the mining industry.