GDX Breakout Confirmed By EUR/USD Breakout

GDX has now moved solidly above the 14.05 resistance level, opening the door to a rally up towards the 14.50 - 14.60 are in GDX in the coming days. Today's breakout in GDX was also confirmed by the breakout in the EUR/USD bullish falling wedge discussed in yesterday's video, further validating today's breakout in the gold mining stocks. This should correlate to about a 20% gain from where GDX broke out today to my next price target of about 32.25 on NUGT, assuming the miners continue to play out as expected.

I will point out, however, that both GLD & SLV need to break above these downtrend lines (60-minute charts) in order for the GDX/NUGT scenario to play out. As such, with NUGT trading up about 9% on the day while approaching gap resistance around 28.12, active traders that took today breakout might consider booking partial or full profits for a quick day trade if NUGT gets above 28.00 (or place a tight trailing stop at that point).

Longer-term traders & investors should focus on the potentially bullish technical developments highlighted in yesterday's precious metals & miners video which makes the case that the potential exists for the current long trade in GDX/NUGT to morph into a longer-term swing trade or possibly an multi-month trend trade or investment, should the longer-term charts continue to firm up.

Dec 1, 2015 2:58pm|Categories: Completed Trades - Long, Gold & Commodities|Tags: , |Comments Off on GDX Breakout Confirmed By EUR/USD Breakout