While precious metal stocks have all had a nice rise over the last couple of weeks, they may be setting up for an even nicer run in the near future. Looking at a weekly chart of the U.S. Dollar index (DXY0) we can see that it has been forming a bear flag over the last couple of months just underneath a long term trading range. If the U.S. Dollar were to fail these levels and make its way down to the lows we formed in 2008, it would likely have bullish repercussions for gold and silver related equities.
One of the many gold miners with an appealing chart is New Gold Inc. (NGD). It is currently consolidating just below the all time highs it formed in April of this year and is likely to break past them if gold prices continue to go higher.
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