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GDX Alt. Scenario Playing Out. Bounce Here, then More Downside

GDX stopped just 2 cents shy of the 15.64 resistance yesterday, with the alternative scenario & bearish rising wedge (mention in the forum yesterday) playing out nicely so far. The nice fat gap down today (mentioned in the Trading Room yesterday as a possibility which would re-affirm the bearish case) follows yesterdays rising wedge breakdown & increases the odds that GDX is likely headed to the 15.40-15.20 area (and DUST 16.30 price target) in the coming days.

GDX 5 min Oct 21st

GDX 5 min Oct 21st

 

While now at a pretty solid gap support level, GDX is likely to bounce & then continue lower. I have just booked profits on the DUST shares that I bought back yesterday shortly after closing NUGT & reversed again (into NUGT) for a quick bounce, then plan to re-enter DUST for the next leg down. Bounce target TBD but I'm not looking for much, only a quick bounce. Just to be clear, when I post micro-managing a trade (reversing long to short or short to long off support/resistance level while swing trading a position for a larger move), those are not official trade ideas. DUST remains an Active Short Trade on the site since the Oct 15th entry with a current final & sole target of 16.30.

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Oct 21, 2015 10:12am|Categories: Completed Trades - Short, Gold & Commodities|Tags: , |Comments Off on GDX Alt. Scenario Playing Out. Bounce Here, then More Downside