GDX Scenarios

Earlier today, GDX (Gold Miners ETF) kissed this horizontal resistance line which also comes in with the 50% Fib retracement, which is likely to be the final end-point for this counter-trend bounce. Should GDX break above that level the 16.54 resistance + 61.8% will likely cap any further advances.

GDX 5 minute 2 Oct 20th

GDX 5 minute 2 Oct 20th

I have drawn the two most probable scenarios (orange & blue arrows) on this updated 5-minute chart. Personally, I'm sitting tight for the time being but will likely start added back some short exposure to the miners if/when GDX approaches the 16.30 area (where my primary scenario has it turning back down today) and continue adding up to but not beyond the 16.55 level.

Note: since I started working on this post after taking the screenshot of the chart, GDX climbed up to the 16.30 level so I went ahead & took a 50% position in DUST which I may or may not add to.

2017-03-08T21:20:13+00:00Oct 20, 2015 11:29am|Categories: Completed Trades - Short, Gold & Commodities|Tags: , |3 Comments


  1. david k October 20, 2015 12:54 pm at 12:54 pm

    Randy, you adding more DUST here at the 16.4 level on gdx?

  2. Wiseguy October 20, 2015 1:23 pm at 1:23 pm

    I believe if he adds it would be near the alternative scenario near 16.55

  3. rsotc October 20, 2015 1:40 pm at 1:40 pm

    @david-k Not adding to DUST just yet & might only keep the 1/2 position down to my next & final target unless stopped out (somewhere north of 16.60 on GDX). That small yellow uptrend line that I just posted on the 5 minute chart could be extended to yesterday’s lows & readjusted under current prices to form a rising wedge, which GDX might want to move higher within before breaking down. Not to sure so keeping it light with a 1/2 position for now.


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