The chart shown suggests that gold bears could be in for another rough patch. It is a 3x bear gold-mining stock ETF, and the pattern you see looks capable of sending DUST down to as low as 0.80 — a 75% decline relative to the current price of 3.14. The pattern has been confirmed by several precise hits at both p and p2, and although it has not yet signaled a ‘mechanical’ short from the latter, we shouldn’t hesitate to do so if it gives way. Alternatively, a bearish signal for mining stocks would be flashed if DUST were to rally above the 4.35 peak shown. _______ UPDATE (March 27, 10:15 p.m. ET): DUST has given up little ground since gapping sharply higher last Wednesday on the opening. This adds menace to the rally, since it would take but a 0.50-point rally above the recent high to hit our bearish benchmark at 4.35. _______ UPDATE (March 29, 6:51 .m.): Gold’s surge sent this vehicle lower, out of the danger zone for the moment. My immediate downside target is 2.86. but if DUST closes below that Hidden Pivot for two straight days, look for more downside to 2.53.
