Nice, the miners are going green after a tough start.
But GDX has not taken back the SMA 50, which it lost this morning after dumping out of a bear flag and a lousy looking pattern. I’ll be amenable to a bullish view (and indeed I added NGD, SAND and have thus far unsuccessfully been trying to fish for some MAI.V/MAIFF) if GDX takes back the bear flag and the SMA 50. Until then, the correction view continues and lower supports are noted.
GDXJ used the SMA 50 as support and bounced. It’s still in a resistance zone but it too would become constructive if it were to take that out. GDXJ looks better than GDX and my theory continues to be that the gold sector is now purging the institutional knee-jerks that flew into the big names (NEM, GOLD, AEM, WPM, FNV, etc.) amid the angst of March and April. The general correction continues until we start taking out some upside resistance levels.
