Comments on: GDX Bearish Pennant Breakdown Likely

By: rsotc

rsotc — Wed, 25 May 2016 14:17:03 +0000

In reply to Teeps01. @teeps01 - If GDX makes it down to the 21.20 area, especially if that corresponds to a move to 115.70-116.00 in GLD, I would definitely expect a significant reaction & quite possible the end of the pullback in GDX. Although I might cover before then, if not I will have closed my entire short position just above that level as the R/R to remain short at that point just wouldn't be favorable anymore.

By: Teeps01

Teeps01 — Tue, 24 May 2016 20:39:02 +0000

Very nice call yesterday Randy. Do you expect a reaction bounce at your target?

By: GetItRiight

GetItRiight — Tue, 24 May 2016 13:35:57 +0000

I just sold at GDX 23.30. The way GDX has been behaving lately, I am sure it will backtest that wedge, so I will watch for the 23.65 level, then I will buy back in.

By: rsotc

rsotc — Tue, 24 May 2016 13:31:53 +0000

In reply to GetItRiight. The most objective add-on would have been on a breakdown beneath the wedge earlier this morning in pre-market when GDX started trading around 23.60. That put it below the wedge & the fact GLD was trading down helped to confirm the breakdown. One could still add here around the open but the farther prices move below the pattern, the less objective the entry or add-on. 23.23ish is a minor support level so maybe wait until GDX trades below 23.20 before adding OR add on a backtest of the pattern.

By: GetItRiight

GetItRiight — Tue, 24 May 2016 13:18:09 +0000

What do you see as an objective short add on area on GDX?

By: rsotc

rsotc — Tue, 24 May 2016 13:08:29 +0000

In reply to Omdavis21. With gold moving lower overnight & the miners following in pre-market today, GDX is currently poised to gap down below the flag pattern today.

By: Omdavis21

Omdavis21 — Tue, 24 May 2016 02:08:30 +0000

looks like a good call. Thanks Randy