Friday, 20 January 2017

GDX - miners somewhat stuck

With the precious metals somewhat stuck at resistance, the related mining stocks are similarly stuck. The ETF of GDX settled the week net higher by 1.7% @ $23.12. Near term outlook is very mixed, not least as any renewed USD strength will pressure the metals lower, and by default... the related miners.

GDX, weekly

GDX, monthly


Suffice to add... we are in a mid term upward trend from the Dec'2016 low of $18.58. That remains significantly higher than the Jan'2016 low of $12.36. Broader price structure since last summer is arguably a large bull flag.. or wave'2 retrace.

The 200dma is in the mid $24s. Frankly, I want to see at least the $25s to have some kind of provisional bullish confidence that the $18s were indeed a key higher low.

The super conservative 'bullish chasers' can start chasing with a weekly/monthly close >$27.