Wednesday, 21 March 2012

GDX: the Miners are trying to bounce

After a significant sell off- not least aided by further falls in gold/silver, the miners are trying to bounce.

GDX, daily, near term

We've seen a double down cycle from 58 to 48 in just 3 weeks. GDX is without question oversold in the very near term, so a move back to 52/54 would be entirely valid, even though the overall cycle is still bearish.

Targets will be a move back over the psy' level of $50, and then a close over the 10MA around 51.50.

GDX, weekly

A retrace back to around 54, perhaps even as high as the 10MA of 56 seems very valid - and that would still not negate the overall bearish 'rolling over' action we are seeing.