If Jim Sinclair is correct in his assessment that precious metal juniors have bottomed then we may find ourselves at the threshold of another major advance for the juniors in this secular bull market for commodities and precious metals.

Appliepie and Reg Mills have both indicated that this long term consolidation has most likely concluded and I would have to agree especially given the recent divergence between the DOW and HUI that suggest investors are using gold stocks as a hedge against the ever increasing concerns from inflation.

Also something that is extremely encouraging as of late is how the juniors have been reacting to positive new releases, where they would have been met with a sell off as recently as a few weeks ago.

The chart below illustrates how ECU has been forming a massive falling wedge over the last 2 years similar to what happened from early 2004 to late 2005. Will we experience another deja vu in the coming months?