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GLD & GDX Back-testing Support, Reversal Likely

GDX (Gold Miners ETF) is currently testing the 14.60ish support zone from above while GLD backtests support as well. GLD (Gold ETF) is backtesting the recently broken secondary downtrend line while the MACD backtests the zero level. The MACD often defines the current trend; bullish when the MACD is trading above the zero line & bearish when below. Also note how the MACD zero line often acts as support when tested from above & resistance when tested from below.

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Nov 2, 2015 10:26am|Categories: Gold & Commodities|Tags: , , , |2 Comments

2 Comments

  1. RickySixx6 November 2, 2015 10:51 am at 10:51 am

    Are you seeing a GDX bounce back to the 16 range before a possible break out UP or… more likely reversal towards 13 or 14?

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    • rsotc November 2, 2015 11:51 am at 11:51 am

      Based on my analysis of the longer-term charts, I think the potential exists for a possible move up to at least the primary downtrend line (off the Sept 2012 high), which would come in around the 17.15 area if it took about 4 weeks to get there (which would be my best/rough guesstimation). I think a long here with stops slightly below the 14.50 level has a very attractive R/R with minimal downside and the potential to morph into a multi-week swing trade of about 16% upside & possibly much more if that downtrend line gets taken out.

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