I was a little uneasy about the gap up in gold stocks this morning (uneasy because I’ve added positions and want to see the bounce continue), but that is being remedied now after the momos presumably bought the gap open for fear of missing out and GDX is addressing that.
The 15 min. chart shows two gaps, one down at 34, which I’m not going to worry about yet and the other being this morning’s little burst of enthusiasm. If/as that one fills we’d want to see the 35 area hold as support or GDX could drop to 34 to fill the bigger gap.
For right now, there is nothing wrong here and the bounce is still viable. The bounce scenario would not be dead on a lower gap fill either. But I’d rather not see it right now because the pullback started at the daily chart’s downturned SMA 50 and SMA 200. In other words, it’s a still bearish chart but if the above is just a pullback to refresh then the daily chart could go about repairing its condition. There is an upside gap just below 37. That’s another consideration.
