GDX made two high volume down days and is bouncing. This chart attempts to gives short term parameters and technical perspective.
As noted previously, the 22 level is the rough equivalent to the HUI 205 parameter.
The big volume may have exhausted short term selling pressure and if today’s candle closes as is, it would engulf yesterday’s candle signaling a potential bounce. Critical resistance to such a bounce is noted. If it gets above the red line we may start taking the idea seriously that a right side shoulder of the still intact weekly potential bottoming pattern is being built. Below the red line, it is just a bounce.
