https://rightsideofthechart.com/euro-backtesting-wedge-gdx-trendline-backtest/ Stock Trading, Investing & Market Analysis Thu, 09 Mar 2017 02:20:01 +0000 hourly 1 https://wordpress.org/?v=6.9.4 https://rightsideofthechart.com/euro-backtesting-wedge-gdx-trendline-backtest/#comment-873 Wed, 10 Feb 2016 17:06:01 +0000 http://rightsideofthechart.com/?p=169738#comment-873 A couple of reasons: 1) 15.80 is only my minimum downside target. Yes, the next logical target would be the bottom of the Feb 3/4 gap. 2) 15.80ish is also the top of that gap. Tops of gaps often act as support when initially backtested from above. 3)15.80 is horizontal price support, defined by numerous reactions and gaps going all the way back to the July 17/20 gap in 2015. 4) 15.80 is also the 38.2% Fib retractment of the rip off the Jan 19 & 21st lows. Key Fib level + price support + top of gap = very good support level which is likely to be tested at least once before GDX goes on to new highs. Finally, to allow everyone who’s been dying to get long the miners step in & buy on that perfect backtest of that well-defined primary downtrend line is just a bit “too easy” in my book. Maybe that proves to be it for this pullback but I’m betting those who stepped in to buy that backtest will get burned.. very soon. JMHO & again, assuming GDX has more downside, I may extend my target(s).

]]> https://rightsideofthechart.com/euro-backtesting-wedge-gdx-trendline-backtest/#comment-872 Wed, 10 Feb 2016 16:56:06 +0000 http://rightsideofthechart.com/?p=169738#comment-872 I’m surprised you’re marking 15.80 and not 15.35 which represents a filling of the Feb 3 -> Feb 4 Gap Is there a reason for that or are gaps fills not always a target to focus on?

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