Clicky

GDX Testing Key Support, Reversal Likely

GDX (Gold Miners ETF) is testing the key 13.3o-13.34 support level with bullish divergences in place that indicate a reversal (GDX up) is likely to occur from or slightly below current levels. 30-minute chart:

GDX 30 minute Dec 17th

GDX 30 minute Dec 17th

0
Dec 17, 2015 3:56pm|Categories: Gold & Commodities|Tags: , |2 Comments

2 Comments

  1. GM December 18, 2015 4:07 am at 4:07 am

    Hello Randy.
    Thanks for the charts. I’m holding some gold miner positions for a short term trade, riding the volatility (you get used to it with these things!).
    Juts looking at a daily chart, wondering if you think we might see a nice little jump up toward (or maybe even past) the 17 level that was reached back in mid October. I see a gap to be filled at 15.89.
    Thanks, and Merry Christmas to you.

    0

    • rsotc December 18, 2015 9:03 am at 9:03 am

      GM, here’s my thoughts on GDX: As far as a move back up to & especially the Oct reaction highs around 17, yes, I do see that as a very likely possibility within the next several months & somewhat, but less likely to happen within the next several weeks.
      Studying the charts, with GDX so close that that key 13ish support level & the Sept 11th reaction low of 12.62, I would almost have to put odds on one final quick wash-0ut move below 13 & possibly that 12.62 low. That Sept 11th low was a divergent low (which the strong rally into the Oct highs was launched from) and if GDX were to put in a marginal new low here soon , we would have even more powerful positive divergence on the daily time frame than we did back in Sept. Bullish divergences also continue to build on the weekly time frames as well, indicating a major trend reversal (bull market) in the miners is highly likely to begin some time in early 2016.
      Let’s see if we get that bounce that I’m looking for here off the 13.30-13.34 support level & if so, how it looks. Although a slight new low would put in another divergent low, it is still quite possible that the Sept lows could prove to mark the end of the bear market in GDX but again, with prices barely above those levels right now, it is way to early to say that is or was the case with any degree of confidence. I’ll try to post some additional charts of GDX along with the $USD and/or USD/EUR later today. Merry X-mas to you as well!

      0

Comments are closed.