After consolidating for the last 7 trading sessions the gold miners are preparing to stage an end of year rally:
GDX (Daily)
The initial upside target is the gap fill at $19.82 on the GDX, then previous support near ~$20.25 comes into play. It wouldn't be unreasonable at all to see a rally on lighter volume carry all the way up to the ~$21 level over the coming days. We remain long NUGT in the Trading Lab.
In other news I found the following chart of U.S. oil production relative to rig count to be truly remarkable:
Oil production is not far off its 2015 peak levels even as the U.S. rig count has literally fallen off a cliff. This is a testament to advances in technology and the market sidelining inefficient wells. However, it also shows that with a further increase in the oil price we could see that rig count climb again and supply reach fresh record levels.
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