GDX - price action is tight

With the precious metals ending the week on a positive note, the miners followed, with the ETF of GDX settling +1.5% at $22.91, making for a third consecutive net weekly gain of 2.2%. Broader price action is tight, as GDX is now at the intersection of two key trends.


GDX daily

GDX weekly

Summary

So, with Gold and Silver climbing for a third week, the related miners naturally followed. Yet.. a large part of the recent bounce is unquestionably due to weakness in the USD. If the USD can bounce just 1% next week/early August, the precious metals will be under renewed downward pressure.

Seen on the bigger weekly chart, GDX is clearly at a key intersection. Either its going to break up and away... or its going to roll back lower, and eventually take out the July low of $20.99.

Best guess?  Its really difficult to call.

I would however give a special highlight to copper, weekly

Copper had a powerfully bullish week, gaining a net 5.6% to $2.88. A test of the giant $3.00 threshold appears due in August.

If copper can break AND hold the $3.00 threshold, it will bode VERY bullish for Gold, Silver, and the related mining stocks.