GDX unofficial final target hit; pullback targets listed

In returning from a weekend trip, I've noticed several questions regarding GDX & the miners. As I am unable to reply to each question individually right away, I'll share my thoughts on GDX, as cut & pasted from one of my replies this morning (with a few edits/additional comments):

After returning last night from a weekend trip, I plan to study the charts of GDX as well as the broad markets and other stocks & sectors that I'm following. I hope to be able to post a more detailed update on the miners later today, possibly tomorrow but at quick glance, I'd say the miners may pullback from this morning's highs.

On Friday, GDX closed right around the Aug 21st reaction high which was the potential final target posted here in the original NUGT /GDX long trade setup about two weeks ago. That chart from Oct 1st is posted above along with today's updated 60-minute chart. (note: That potential final target was not the official final target, although it was reiterated in this post again on Oct 6th that it would be the next significant resistance level if the miners were to continue to rally beyond the official T2 level of 15.22).

Today's opening gap above that levels was likely just a momentum-fueled overshoot, which has so far been faded, taking GDX back below the Aug 21st high. Scenarios drawn here show the two most likely pullback targets although a move all the way back to the T1 level (14.80 area) would be well within the range of an normal pullback following such a strong advance & would not surprise me in the least.

Again, I hope to following with a more detailed analysis of the mining sectors after I've had time to study the charts in more detail. Unfortunately, I'm working on some last minute preparation for my tax return (Oct 15th extension deadline) so trade updates & market commentary will be light until I wrap that up. (end reply)

2015-10-12T23:55:03+00:00 Oct 12, 2015 11:09am|Categories: Gold & Commodities|Tags: , , |Comments Off on GDX unofficial final target hit; pullback targets listed