GDX (Market Vectors Gold Miners ETF) has hit the first profit target for a gain of 8% or better.  The “hard” entry on GDX was stated as a break over the 22.40 level while the “soft” entry on GDX was suggested back on Dec 17th to begin scaling into the mining sector as $GOLD was approaching key long-term support. That post was made just four trading sessions before GDX bottomed.  A nearly identical post suggesting a scale in to the gold & silver stocks was made back on June 26, 2013, on the very day that the gold stocks bottomed & immediately began a 40% bull run.

I’ve used this tag of resistance on GDX to book some profits and reduce exposure to the sector and will look to add back exposure soon.  For those trading GDX, the next buy signal will come on a break above this downtrend line, preferable after a pullback or consolidation to help alleviate the near-term overbought conditions.  Individual mining stocks should be traded based on both their individual charts as well as the charts of GLD/$GOLD and GDX, taking profits on thrusts into resistance/target levels while adding exposure on pullbacks to support, assuming the charts confirm.