Gold stocks could still drop

I last talked about KGC and gold stocks here. Since then, my stop on my KGC short position has been triggered. I still think Gold has another down-leg in store before the uptrend continues. However, I think ABX (Barrick Gold) is a better shorting candidate.

KGC's pattern isn't as clear as ABX's (below). I am still not ruling out the possiblity of a new trend low, however.

Similar to KGC, ABX formed an ending diagonal and then dropped sharply. It is now correcting this drop is a shallow flag pattern. If price can stay contained within the channel, I will look to short this stock.

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