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GDX Approaching Bottom Of Gap Support, Bounce Still Likely

The bottom of Tuesday's gap lines up with this 15.72 support level that I've posted on this 60-minute chart since Friday. I plan to add to the NUGT long bounce trade here with a stop somewhat below for a quick bounce trade (likely to be closed within hours) & I plan to buy back the DUST shares closed at the top of that gap earlier today for the next leg down, assuming the expected bounce plays out.

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Oct 21, 2015 10:38am|Categories: Completed Trades - Short, Gold & Commodities|Tags: , , |4 Comments

4 Comments

  1. david k October 21, 2015 10:58 am at 10:58 am

    Small inverse head and shoulders on the 5 minute gdx chart measures to 16.07 or so.

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  2. shah October 21, 2015 3:36 pm at 3:36 pm

    you going with DUST near the close? GDX hasn’t really moved? near support

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  3. rsotc October 21, 2015 3:46 pm at 3:46 pm

    @shah Yes, absolutely. GDX kiss the bottom of that gap this morning & has been walking the line just above it all day. Typically after periods of such tight consolidation/range-bound trading, the following move is often sharp. I still favor a move up to around the 16 area in GDX although we did fall just shy of that level on the initial bounce following the gap backfill earlier today so that could be it. Despite any short-term gyrations, the near-term trend remains bearish in GDX for now although the closer we get to my 15.20-15.40ish pullback target in GDX, the less favorable the R/R to initiating or adding onto a short position becomes. Probably best to hold off on adding to any more DUST at this point & sit back to wait for the next long entry on the miners. JMHO

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  4. shah October 21, 2015 4:01 pm at 4:01 pm

    thanks will just wait

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