NFTRH+; A Close Look at the GDX Daily & 30 Min. Charts

As we wind down toward the holiday weekend, let’s take a look at the situation with the GDX daily and 30 min. charts. Yesterday it dropped down to test short-term support on the daily, fill a gap and hold the EMA 20. I added to my position on that drop. But I am not so sure it was a one and done as far as the pullback goes. I am trying to look at this in as unbiased a way as possible.

GDX filled the downside gap yesterday and today has bounced back to come within a penny of filling the upside gap at 36.45 (the high of the day is 36.44) before reversing back downward in-day. Consider it gap filled? Possibly.

Remember, this stuff is not science, it is art. At least the way I do it. It is good to have the downside gap out of the way but there lurks another just below 31. As a reminder, I am not worried about the gap at the moving averages and so have not marked it up on this chart. I believe it to be a breakaway gap.

gdx

The 30 min. chart shows the gap down from yesterday not quite filled, and this morning’s gap up has been filled. Again, good to have that one out of the way. Thus far it is normal in-day activity for still up trending (on the daily chart) ETF.

gdx

Bottom Line

GDX is still trending up (daily) after dropping to fill an important gap yesterday. It also filled this morning’s opening gap up. That is good too. Should it want to resume rallying these things are no longer standing in the way.

There remains a downside gap below 31 on the daily chart however, and that has the potential to fill either sooner or later. I have been adding to GDX on down days, but that would be a bigger buying opportunity (assuming intact funda and macro indicators) if it were to come about. If at any point GDX were to lose the EMA 20 (34.46 and rising) on the daily (1st) chart above we could look for a deeper correction to the larger support level. Otherwise, the EMA 20 is the guide to higher prices as it been for going on 2 months now.