GDX - a little higher in the near term

Whilst the main equity indexes saw some moderate gains to close the week, the Gold miners ETF of GDX slipped 0.5% to close @ $38.23. Near term trend is still moderately higher, but its probably a bear flag, and further significant declines seem likely across the spring.


GDX, daily

GDX, monthly

Summary

The daily chart is offering a bear flag/wedge, with a near term target of 40/41 where there is significant declining resistance.

It would seem very unlikely that GDX will be trading in the 42s or higher for some considerable time.

However, as is always the case, the miners will be very susceptible to further weakness in the precious metals - although the GLD/SLV weekly charts are suggestive of at least a little near upside.
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The GDX monthly chart is presenting a very severe decline, and although the March candle is a touch positive, its nothing significant yet. Only a monthly close above the 10 MA @ $45, would suggest that the huge wave lower that started in summer 2011 is finally complete.