...this chart looks horrible for the miners. GDX needs to close above 34 (~ the 50/200 day MAs) and then 38 before we are out of the woods on these guys. Look at that strong descending trendline I've drawn!
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Point/counterpoint on trading and investing
Don't get all "Tim Knight" on me...
ReplyDeleteLike I told you earlier... Tuesday's panic pullback to 29.2 on GDX was the low for this cycle. Pull up a 6 month chart and it looks beautiful. Higher lows and higher highs.
I don't expect GDX to rocket higher just yet, and actually I am suprised (and happy) we have rallied 13% from Tuesday's low... But I do think the low was already put in for this pullback. I think we hang around 30 for a while before another big push upward.
I try not to be too "slopey". The $GOLD chart is alot nicer than the GDX chart. There is quite a divergence there right now. $GOLD is still all well in a bullish pattern, but GDX looks sickly. We'll have to see what wins out in the short term. In the long term, we both know $GOLD will be at $2,000.
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