GDX - a choppy May

The mining sector ETF of GDX settled the day +0.5% at $22.70, which made for a net monthly gain of 2.1%. Price action since February has been choppy, leaning on the weak side. May saw a marginal break of core rising trend, but it was a transient event, and the positive monthly close keeps open the door to far higher levels this summer.


GDX monthly

GDX daily

Summary

Suffice to add, its been a choppy few months for the Gold miners, not least as the precious metals have themselves been seeing some swings, also leaning on the weaker side.

A key issue is the USD, which recently saw a break of mid term rising trend. By definition, a weaker USD is inherently bullish for Gold and Silver, and the related miners.
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Yours truly is still leaning bullish. Lets be clear though, if the May low (GDX $20.89) is taken out in June (or any time after), it would bode badly for mining stocks and the precious metals.

MU - breaking up and away

Whilst the main market saw a day of subdued weak chop, there was notable strength in Micron Technology (MU), which settled +3.2% at $30.71. There is a clear break out of the consolidation range, with the $35/36s due as early as July.


MU, daily

MU, monthly

Summary

Suffice to add... recent earnings were superb.

Further upside to $35/36 looks a given. Any closes in the $37s would be hyper-bullish, and offer 45/50 by spring 2018.

I am extremely bullish MU. Alternatives... INTC, QCOM, NVDA, and AMD.

GDX - a third week for the miners

With precious metals on the rise, the gold miners ended the week on a positive note, with the sector ETF of GDX settling +1.0% at $22.94, which made for a net weekly gain of 0.3%. Near term outlook is mixed, as there is significant overhead resistance.


GDX, daily

GDX,weekly

Summary

So, a third net weekly gain for the gold miners. Recent price action has been choppy, and its notable the weekly candle was of the black-fail type... just like last week. That does bode on the weaker side in the near term.

The weak USD - stuck under the DXY 100 threshold, continues to help prop up Gold and Silver, and that is certainly helping the related miners.

Outlook: near term is mixed, but mid term is bullish.

Key levels: Gold $1400, Silver $22s, Copper >$3.00, with GDX $32s. Indeed, any price action for GDX in the $32s would open the window to a grander run to $50, as early as spring 2018.
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