GDX - miners suffer as Gold slumps

Despite the continued rally in the broader market, the Gold miners saw all of yesterdays gains lost, with GDX closing -3.9% @ $34.61. With the precious metals back on the slide, GDX will remain under pressure. Near term price formation looks like a bear flag.


GDX, daily

Summary

The last five trading days have been a real choppy mess, and what we've got from it all is nothing less than a bear flag.

Another day lower, and the flag will likely be confirmed, and we'll quickly take out the previous low of $33.71

Primary target would be the big $30 level, and eventually - assuming Gold and Silver remain at least 'moderately weak' across the summer, GDX looks set for 25..or even the very low 20s.

The miners remain my favourite sector, but clearly, the price trend looks VERY weak for some months to come.