Monday, 27 February 2017

GDX - short term weakness

The precious metals and miners saw some significant gains by late morning, but the short term trend from early February resumed, with the ETF of GDX settling lower by a very significant -5.6% at $22.78. The 50dma is now being tested. Any daily closes <$22.00 would threaten an unravelling back to the Dec'2016 low, but that looks unlikely.

GDX, daily

GDX, monthly


It was a day of two halves for the Gold miners. The morning saw some gains by late morning, as Gold/Silver had  built moderate gains.

Yet, the afternoon saw a very sharp reversal.. as Gold swung moderately lower.. with GDX rapidly imploding by the biggest amount since the Dec'2016 low of $18.58.

Notably, with just one trading day left of the month, the current candle is set to close net lower. The candle has something of a topping spike, which is inherently bearish.

For the moment, there is no need for alarm bells, as we're still well above rising trend.. which would only get broken (in March) with price action <$20.00.

Lets see how Tuesday/February settles.

I've just recently published my first Gold Miners report. Its the first of many (I hope), and as well as an update on the precious metals, I cover GDX, along with 13 of the individual miners.

For details: