Tuesday, 4 October 2016

GDX - Tuesday mining massacre

With Gold and Silver smashed lower across the day, the related mining stocks were similarly obliterated. The ETF of GDX settled lower by an outright horrific -9.8% @ $23.42. Near/mid term outlook is bearish, as a great many aspects of support have been broken... as now also reflected in Gold prices.

GDX, daily

GDX, monthly


Gold was borderline breaking rising trend last week... a trend that has held since the Dec'2015 low.

Yesterday, Gold broke outside of that trend. Today's massive decline gives absolute clarity that the upward wave from Dec'2015 has concluded.

In many ways, this week can be counted as 'week'1 down' for Gold. Considering the rally spanned a full 9 months. It is VERY conservative to say Gold will now broadly cool for at least another 2 months... probably 3.

If that does turn out to be the case.. the related mining stocks are in for a world of hurt.

Many of the miners have multiplied many times from the lows... yet... there is now a high threat they'll retrace everything gained.

*its notable there never was any 'industry capitulation' within the mining sector, as the metals broadly declined across 2011-2015.