GDX - difficult week for the miners

With Gold and Silver seeing a second consecutive week of declines, it was a rather bearish week for the Gold mining stocks. The sector ETF of GDX settled the day -0.2% at $22.06, which made for a very significant net weekly decline of -3.4%. Price action is setting up for a major break.


GDX weekly

GDX daily

Summary

With the fed raising rates, the precious metals saw another wave lower, resulting in sig' net weekly declines. Not surprisingly, the related mining stocks followed.

Note the daily bearish engulfing candle on Wednesday for GDX. Opening gains - ahead of the rate hike, were powerfully reversed. The Thurs/Friday declines confirm what was indeed a key reversal day.

Further, its notable that GDX went sub $22 on both Thursday and Friday, which was a borderline break of core rising trend. Keep in mind we saw a marginal break of trend in early May.

If the May low of $20.89 is closed under... it would bode exceptionally bearish.

Near term outlook has to be bearish, as the commodity sector remains broadly weak.