GDX - miners crushed as precious metals slammed

With Gold and Silver commodity prices seeing their biggest drops in a fair while, the mining stocks naturally saw rather severe falls. The Gold miner ETF of GDX closed -5.5% @ $25.31. So far this month, GDX has lost 10%.


GDX, daily

GDX, monthly

Summary

Next key support for the miners is $24 - the low from early August.

If we see more than a few daily closes in the 23s (or lower), then a break of the late June lows looks very likely. That in itself would also be a major negative sign for Gold and Silver prices.

On the bigger monthly chart, we have set up a very large multi-month bear flag. If that is the case, the primary target zone for the next wave is the Oct' 2008 low zone of 17/15s.

That of course is a rather extreme 30% lower from current levels, and would likely take at least 3-4 months to hit.