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XME Is Ready to Fall Hard

This is a syndicated repost published with the permission of Slope of Hope – Technical Tools for Traders. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

Here is the metals and mining ETF, which has demonstrated its overhead supply by way of that upper horizontal line:

As you can see from many years of data, this instrument definitely has the ability to top and fall.

As the ratio chart below suggests, XME’s explosive rally versus GDX is very long in the tooth, which I believe improves the likelihood that XME is in for some weakness.

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