Friday, 7 July 2017

GDX - a very bearish weekly close

With the precious metals leaning significantly weak, the related gold miners are continuing to be dragged lower. The ETF of GDX settled the day on a bearish note  -1.3% at $21.21, which made for a net weekly decline of -3.9%. The weekly close under core rising trend/support is very bearish indeed.

GDX, daily

GDX weekly


Frankly... this is one seriously bearish weekly close, arguably, the worse since the key low in Jan'2016.

I recognise some might still call price structure - from early February, a large bull flag, but GDX is decisively under core rising trend that stretches back 1.5yrs. This can't be lightly dismissed.

Near term outlook: bearish. First soft target is the Dec'2016 low of $18.58. If that is broken under, then a full retrace to the Jan'2015 low of $12.36 will be on the menu.

Keep in mind, Silver has already broken below core rising trend, and that sure doesn't bode well for Gold... or the related mining stocks.

*see my related post for Gold and Silver!