[w/ corrective edit]
Daily and weekly charts of the two gold stock ETFs.
GDX daily kissed the SMA 50 and SMA 200 goodbye and then kissed the neckline to a gross looking pattern goodbye. It is getting short-term oversold and a bounce could come at any time. If so, I’d look to the 30+ area [33+] as an objective. Beyond that it’s still a very bearish technical picture and per a subscriber’s request yesterday my targets for GDX are 27, 26, 24 (roughly equating to our operating targets of 230, 212 & 185 on HUI) and if a disaster unfolds, anything above the crash low of 16.
GDX weekly shows very clear long-term support at 29-30, however. Support is support until it is broken and this begs an open mind about the potential targets noted above. It is possible that with myself and other TAs guiding lower the sector could put the screws to those downside targets. So it could bounce soon and the nature of that bounce will determine what’s next, correction’s end or further decline.
GDXJ daily would hit resistance traffic at around 43. Side note: both daily charts show gaps above and it is possible those could fill as well if a strong bounce materializes.
GDXJ weekly is in the midst of a long-term support zone. Time to bounce or break down.
