Below is a larger version of the daily chart of GDX I’ve been using to update subscribers in-day in the NFTRH Trade Log notes, which are now as least as much about the ‘notes’ part as the ‘trade’ part. As dynamic markets do their thing, updating this way (as opposed to the normal and usually more involved email updates) is proving to be a real help in allowing me to be a little more, well, dynamic. I can do this in-day and more formal updates before/after market hours if/as needed.
Anyway, as to the chart, in the TL notes we first established the goal for GDX to go no further down lest it be broken, technically (last week). Then upon a hold of the SMA 200 we established a goal to take out the SMA 50.
Then today, among some updates of macro fundamentals, indicators and CoT we noted…
1) There go the gold stocks, getting dragged again by the broad bearishness. Yields are nose diving to a full deflationary signal, yet the US dollar is dropping and the gold/silver ratio is rising. Not normal, but it is the new COVID-19 instigated normal I guess. Here is GDX daily again, showing a potential bearish engulfing candle (but with a long way to go in the day yet) and the desired position above the SMA 50 and support that we’d like to see it close the week in order to be technically ship shape.
3) GDX daily chart intact at 3:45…
So as of the weekly close it’s “ship shape”. Could drop on Monday or could haul ass upward too. All I know is that right now it’s on plan and NFTRH subscribers who are interested were able to keep tabs on the technical (not to mention the funda as noted above) situation in real time. I think there’s good value added in that. Personally, I remained completely calm about it pending the SMA 50 and support.
Subscribe to NFTRH Premium (monthly at USD $35.00 or a discounted yearly at USD $365.00) for an in-depth weekly market report, interim market updates and NFTRH+ chart and trade setup ideas. You can also keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar and get even more by joining our free eLetter. Follow via Twitter @NFTRHgt or StockTwits.