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GDX, Gold Mining Stocks Poised To Rally

On Friday, GDX (Gold Miners ETF) closed a hair above the key 13.00 support level which was recently broken on impulsive selling last week. Should GDX remain above this level & move higher next week, the bear-trap/wash-out scenario discussed in the Jan 20th video will be in play, sharply increasing the odds of a powerful rally in the miners in the coming weeks/months. note: Coverage for GDX & GLD started at the 10:30 mark in the video, which can be referenced by clicking on the link above.

GDX daily Jan 22nd

GDX daily Jan 22nd

I am in the process of updating the trade ideas today & noted that the recent GDX-NUGT long/DUST short trade has been categorized as an Active Trade since November. This trade (which was tagged with all three of the aforementioned ETF ticker symbols) was entered back in November as a long trade (with the suggestion of only using NUGT for a quick trade only, with GDX or a DUST short for those planning to go long the miners for a longer-term swing trade).

Several updates to that trade have been made since, including a third price target added in addition to the first two original targets (with the 2nd price target being hit shortly after the first & GDX reversing just shy of T3 before only recently exceeding the original entry price). The updates included suggested profit taking levels, raising stops, re-entering/adding to a position on pullbacks, etc... for both short-term active traders as well as longer-term swing traders. With that being said, in reviewing the previous updates associated with the most recent official trade on GDX/NUGT (long)/DUST (short), I noted that the official suggested stops on the trade was raised to any move below 24.25 in NUGT back on Nov 19th when the first target was hit for a very quick 20% gain. NUGT went on to trade below 24.25 the following day and as such, the trade should have been moved to the Completed Trades category at that time. Therefore, in keeping with consistency, GDX/NUGT/DUST will be considered stopped out (profitability, right after the T1 was hit for a 20% gain & stops were moved up to protect profits) on Nov 20th. All associated posts will now be moved to the Completed Trade category. GDX/NUGT/DUST might also be added back as a new trade ideas this week if the miners manage to hold above that important 13.00 level.

There are several other trades that either recently hit one or more profit targets and/or were stopped out which I will be updating throughout the day. As today is Sunday & those trade updates are not time-sensitive, new post notifications by email will not be sent out. All updated trades will be posted on the front page of the site, along with notes and/or updated charts, throughout the day.

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Jan 24, 2016 1:34pm|Categories: Completed Trades - Long, Gold & Commodities|Tags: , , |Comments Off on GDX, Gold Mining Stocks Poised To Rally