GDX, daily
GDX, monthly
Summary
In the immediate term, there is certainly a high possibility of a minor bounce - having filled the price gap from mid June. Yet, we now have a concrete wall of resistance in the $27s. I do not expect that level to be broken above in the remainder of the year.
The gold bugs are again starting to be reminded of what happens to commodities (most.. but not necessarily all), when the US dollar increases in value.
Despite a great deal of 'dollar doom' talk out there, we are clearly seeing the USD in a new multi-month up wave. This will no doubt keep very strong downward pressure on both the metals and the mining stocks, probably for at least another 3-6 months.
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*with my grander target of Gold $1000/900s, I am resigned to seeing much lower levels in the miners, and that would most likely see GDX under the big $20 threshold. It would not surprise me if GDX eventually floors in the mid/low teens next year.
