Monday, October 02, 2017

Gold Miners (GDX) At A Super-Critical Level Currently With A "Will It Or Won't It" Choice

In the long run, in all fairness, I'm not super worried about Gold Miners ETF GDX because I think it's future is very bright, especially as we enter a new period in our credit cycle. As usual I'm just hyper-focusing on the near term, but just to be clear from the outset I am very bullish on GDX in the long run. My reason however for being a little pessimistic about GDX has more to do with the U.S. dollar at the moment which I (and many other commentators) think will put in a bit of a bounce over the medium term. The horizontal zone that GDX is caught in between $21.00 and $25.50 could be it's home for a little while. As we speak GDX is right now hovering at the MA(144), my cut off for a bullish/bearish classification, and the EMA's have all crossed over once it encountered the $25.50 resistance. I also have a diagonal line from it's previous consolidation which I am expecting will become the new support level. Be clear though, any move above $25.50 is a buy.