A quick look at GDX as a general guide to the gold stock sector. The pre-market indication is that GDX will fill the gap up from last week. After that we are looking at the same initial support as noted last week, the EMA 20, which includes short-term lateral support (green) and now also the channel bottom. This all comes into play at 23+/-.
A hold there keeps the short-term rally going to targets (GDX 27+, HUI 250+). A failure there opens up greater correction potentials as noted last week. In that event the next levels would be the 50 day averages (21.29 & 21.41 and rising) and the gap at 20, which includes support at the February-March consolidation.
