GDX - miners cave in... as metals implode

With the precious metals seeing very sharp falls into the weekend, the mining stocks were naturally smashed. The ETF of GDX settled lower by a rather extreme -7.2% @ $18.63. If Gold slips to $1000, then GDX looks set to be in the 14/12 zone by early summer, with a grander target floor of 12/10.


GDX, weekly'3, 'best guess' outlook

GDX, monthly

Summary

Frankly, today was absolute carnage for the miners, with some of the smaller mining stocks seeing double digit declines.

However.. the declines in metals were expected... and as ever.. if the metals are lower... the miners will (almost always) be similarly lower.
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GDX looks set to continue broadly lower across the spring.. and into the summer. There seems very viable downside to the 14/12 zone... if Gold $1000. However, if Gold can slip to the fib' retrace of 61%... in the 900/875 zone.. .then GDX will be trading around 12/10.

At that price level.... and time... it will arguably be a generational buy.