The daily GDX chart shows that the senior gold stocks have been contained by either the daily EMA 10 or EMA 20 since failing the 50 day and 200 day averages back in January. This implies extreme weakness and a persistent bear market. “Thank you Captain Obvious!”
Of late there has been bullish divergence and a notable, high volume reversal day on Monday of this week. Those are good things, but GDX (and HUI) must get through the EMA 10 and EMA 20 (faded orange and green lines) to even begin to prove that what is in progress is anything different.
If that is achieved, the next objective would be a test of the 50 day averages. For reference, HUI’s EMA 10 is currently 261, EMA 20 is 269 and the 50 day averages are at 300. Yes, old friend 300. He of the recently failed bounce objective.
Just an FYI.
