GDX is now backtesting the neckline of the Head & Shoulders Pattern on the daily chart. While this is an objective level to add back any shares sold at T1 or T2 and/or for a new long entry or add-on, as per my previous commentary, I do not care for the recent price action in the US Dollar & EUR/USD although the latter is currently backtesting the bottom of the longer-term support range.
GDX daily Oct 25th
I will leave the maximum suggested stop as is for now (a daily close below 17.50) as EUR/USD is at long-term support & the intermediate-term outlook for gold remains constructive at this time. I will continue to monitor gold, GDX & the US Dollar closely & may revise the suggested stop or possibly add additional price targets to this trade, should the case for a major top in the dollar continue to firm up.
EUR-USD weekly Oct 25th
Of course, suggested stops are just that, suggestions as are the trade ideas. Once should use stops & price targets that mesh with their unique objectives, trading style, risk tolerance and/or align with their own outlook for the trade just as they should pass on any trades that don’t align with those same parameters.