Direxion Daily Gold Miners Be (DUST)

[mannken]

Looking through the periscope

Dust technicals are at a very interesting juncture come the full month of November.

Here is what I see:

[positives]

1.) The consolidation at the top of the channel (circled) is exhibiting bullish candle patterns with white bodies and bottom wicks, unlike the (2) previous top channel consolidation areas, in which exhibited either red bodies or top candle wicks.

2.) There is a 1 year cup & handle forming

3.) On the daily, 50MA has crossed 200MA by 10 cents (golden cross)

[negatives]

1.) The upper candle wicks in the circled consolidation area exhibiting selling pressure at any attempt to close above the top channel.

2.) The channel is descending.

3.) Golden crosses can quickly turn into a Death cross.

I think everything will boil down to Miner earnings in the next several weeks. If earnings and forecast are poor, there will be an upper channel cup & handle breakout and Dust will run into the 70-80 RSI area. If earnings are not as poor than expected, then the descending channel patterns continue.