Wednesday, 17 May 2017

GDX - miners following strong Gold

With some concern in the US capital market, the precious metals caught a fear bid in the early morning, with Gold higher by around 1.5%. The related miners naturally followed, with the sector ETF of GDX higher for a sixth consecutive day, settling +1.8% at $23.37. The mid term outlook is increasingly bullish.

GDX daily

GDX, monthly


First, note the giant monthly chart, which saw a marginal break of core rising trend just two weeks ago. Underlying MACD (blue bar histogram) has seen price momentum cool from summer 2016. However, rather than turn negative cycle, momentum has levelled out above the zero threshold, and is now threatening another up cycle. In theory, its possible that we're in the first month of a giant hyper-ramp that will continue into spring 2018.

Indeed, its not even about how the metals and mining stocks trade across the remainder of this week, but far more important is how the month settles.

Whilst Gold has remained comfortably above core support, Silver and the miners saw key breaks of core rising trend/support. Last week saw something of a turnaround, and this week is seeing some rather significant follow through.

Right now, GDX looks set for a net monthly gain, anything around current levels would suffice to help negate the technical damage from two weeks ago.

Things turn hyper-bullish with Gold $1400s, Silver $22s, Copper >$3.00, and GDX $32s.