GDX Trade Update

Although the bounce in US equities is taking a bit longer than expected to run its course, it still appears that a resumption of the recent selling should resume shortly. I'm also still looking for a little more upside in GLD & GDX before any meaningful pullback and so far, today's relatively minor pullback in GLD & GDX (relative to their typical daily price swings) has not inflicted any technical damage to the charts. The only downside that I see is the fact that GDX (as well as GLD & UUP) already came within pennies of the swing target that was first posted on the long entry just over a week ago on March 30th (first chart below) This is a string of the 15 minute charts posted on the most recent & current GDX long trade, ending with today's updated chart:


In that original post and all subsequent updates, I had the actual resistance level as 19.89, which was unadjusted for the sell limit. Most profit targets on RSOTC are already adjusted for the optimal exit price, which is typically set a few cents below the actually resistance level on longs. The reason for this is because is it not uncommon to see a stock, ETF, or index reverse just shy of a well watched resistance levels as longs book profits early and shorts begin to establish an entry in anticipation of a reversal. As such, I'd rather not try to squeeze out the last few pennies on a trade & risk missing a fill, although at times, some trades reverse even just shy my adjusted sell limit/price's all part of the game.

In that March 30th post, the sell target was actually suggested to be placed a few cents below that resistance level and with GDX trading as high as 19.80 yesterday, the possibility certainly exists that yesterday's highs which missed my personal sell target of 19.85 by a mere 2/10ths of 1%, may have been the end of this most recent thrust higher in GDX before a meaningful pullback. Again, it still appears to me that at least one more thrust up above yesterday's highs is likely and I'm holding tight on my mining positions although I'm open to the possibility that this trade fell just shy of my profit target & will have to be closed at a lower price if GDX continues much lower.

2017-03-08T21:20:32+00:00 Apr 7, 2015 2:13pm|Categories: Gold & Commodities|Tags: , |Comments Off on GDX Trade Update