Precious metals and related mining stocks are retreating after a parabolic upmove over the past two months. The charts suggest that gold and gold miners are due for a more prolonged period of consolidation to reset their bullish long-term trends. Gold has pulled back sharply over the past week, extending its decline back below psychologically significant $4,000/oz. level with today’s sell-off. The daily MACD is decisively on a ‘sell’ signal, indicating that short-term momentum has shifted to the downside. If gap-based support near $3,927/oz. is breached, it would increase near-term downside risk to the 50-day moving average (MA), currently $3,766/oz. and rising over time. The short-term pullback in gold has yielded in a downturn in the weekly stochastics. Previous downturns of this nature, denoted by red arrows on the chart, resulted in consolidation phases lasting several weeks. The recent highs near $4,358/oz. define the top of the new range. Large-cap gold miner Newmont Corp. (NEM) gapped below its 50-day MA today in a short-term bearish development, putting next support at a 38.2% Fibonacci retracement level near $75. The slope of the 20-day MA has rolled over to suggest the short-term uptrend has a significant loss of momentum. In conjunction with the 20-day MA, the weekly stochastics have rolled over for NEM in support of several weeks of corrective price action. Below $75, there is a confluence of support, including the 200-day MA, near $60. The weakened short-term momentum behind gold and stocks like NEM comes in response to deeply overbought conditions that should take at least a few weeks to be absorbed. We would view a deeper pullback as counter-trend, ultimately expecting the uptrends to resume, noting gold and NEM have the support of positive long-term momentum. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: None. 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