GDX - miners bull flag?

With the main equity market closing lower, the miners were not able to escape, and the miner ETF of GDX, fell a significant 4.75% to $28.89. Near term price formation could easily be a bull flag though, with next upside to the $34/35s.


GDX, daily

Summary

It remains a very marginal situation for GDX. Is it a bull flag? Well, so long as GDX holds above $28.00 by the Friday close, its still a valid flag. Otherwise..a fall back to the 50 day MA in the low 26s is the target.

The problem for GDX remains the metals. Near term, the metals look set to continue higher, another 5-7% or so. Yet, mid-term outlook is pretty deflationary.

If that is the case, the miners - even the ones that do manage to turn a profit, are going to see their stock prices smashed below the June lows.
-

*trading volume in the miners..and indeed metals..remains VERY high.