Last week we noted the bearish pattern on GDX by a 60 min. chart, got head faked into doubting it on Friday and now, it has grown a second right side hump or shoulder.
Here is the chart from that update. GDX did not hold above shoulder #1’s high and is forming shoulder #2. It is not an H&S until/unless the neckline at 15.75 is taken out, preferably on volume (which there was not much of today).
It is FOMC week and the precious metals are in vulnerable CoT situations, so considering that the pattern has regenerated itself a test of the 14 to 14.50 support area on daily charts is still very doable. That had been the preferred scenario. Also, GDX now resides under the August high of 16.16 again.
Caveat: these very short-term views are not as reliable as daily views.
Meanwhile, if silver bear fund DSLV is forming what could be a small inverted H&S (in development by daily chart) silver must be continuing to look suspect. Remember, silver’s CoT is very bad right now.
Just a little short-term micromanagement/perspective.