Clicky

GDX Pullback Targets

Should GDX reverse & move below today's previous LOD of 17.44, as expected, at minimum I would expect a backfill of today's gap (to T1) and quite likely a move down to the 16.40 & 15.80 levels (T2 & T3).

GDX 30-minute Feb 8th

GDX 30-minute Feb 8th

While I remain longer-term bullish on GDX, a solid weekly close back below 17.00 would likely have near-term bearish implications, indicating another thrust down within the falling wedge pattern is likely before a lasting breakout in the miners. This is only a potential scenario that I'm open to at this time but until/unless we get a solid weekly close below 17.00, the near-term trend remains bullish in the mining stocks. The bullish (white) scenario would have this breakout sticking & GDX continuing higher, quite likely after a backtest of the top of the wedge with the orange scenario, the more bearish of the two, showing a failed breakout of the 17ish long-term resistance level, followed by a thrust back down inside the wedge pattern before a lasting breakout in the miners.

GDX weekly Feb 8

GDX weekly Feb 8th

0
Feb 8, 2016 11:11am|Categories: Uncategorized|Tags: , |2 Comments

2 Comments

  1. Mrg5a February 8, 2016 12:20 pm at 12:20 pm
  2. rsotc February 8, 2016 1:40 pm at 1:40 pm

    The ensuing correction following a parabolic run is often as sharp as the final leg up in the parabola. Even just a modest 38.2% retracement (from where GDX currently is trading at this new multi-month high) would take it back to the 15.80 level, which is also nice support and a likely pullback target. When the music stops on the gold/GDX rally, the profit taking & shorting is likely to take GDX down to that level (about a 12% drop from current levels) within a few days. That reversal will likely coincide with a bounce in the equity markets, which look to have decent support about 1% below current levels with next support about 4% below that if those first supports don’t hold. We also have AAPL and several other mega-caps at or near support as well with potential for that wash-out scenario discussed in last night’s video so I’m watching the broad market patiently for any signs of a reversal to trigger an rally in stocks & a sell-off in gold/GDX.

    0

Comments are closed.