Friday, 27 July 2018

Miners near key support

The gold miner ETF of GDX ended the week on a bearish note, -0.3% at $21.32, and that made for a net weekly decline of -2.1%. Near term outlook is bearish, as Gold has failed to hold the key Dec'2017 low.

GDX weekly

GDX daily


With gold cooling for a third week, the related miners naturally followed. GDX is nearing core price threshold of $21.00. Any weekly closes <21.00 would be exceptionally bearish. The fact gold recently failed to hold multiple aspects of support is suggestive that GDX will soon be sustainably trading <21.00.

Two key miners...

Newmont Mining (NEM), monthly

Currently lower for a third month, but holding well above the 2017 lows.

Barrick Gold (ABX), monthly

Currently -14.5%, having broken below the 2017 lows. Lower wedge/trend support around $10.50.

NEM and ABX are the two biggest components of the ETF of GDX. They are both superb miners, but with gold, silver, and copper, short/mid term bearish, the cautious will leave both stocks and the sector well alone.