Here is a theoretical plan for GDX. At least it is my rough operating guide for the near-term, subject to change as always.
The Inverted H&S that everybody in the gold “community” saw (and some touted) rallied GDX to fill the August gap down and is losing its neckline today. That is fine and does not compromise a near-term bounce/bull case. Recall months ago in our management of the USD bounce it too lost its Inverted H&S neckline. Now look at Uncle Buck.
There is a downside gap left open at 33.32 and GDX could lose the SMA 200 (again, not a show stopper) to fill that gap. I’ve drawn in general support from the high 32s to the low 33s.
As you may know per the Trade Log, I added DUST as a partial miner hedge a couple days ago. That is planned to be a short-term position. I don’t foresee holding it any lower than 33, if/as GDX continues to pull back. As for the Inverted H&S pattern, it targets to fill the June gap with a rough measurement to 37+. That need not be a stop sign as there is another gap up there at 39.34, but first things first.