I’ll take a subscriber comment from the previous update and apply the view to GDX as opposed to HUI in line with that subscriber’s prompt. I know plenty of people trade GDX, so I’ll try to sprinkle it in more along with HUI.

What we’d look for to begin to call GDX a false breakdown in preparation for a potentially strong rally (off of improving fundamentals, positive sentiment and seasonal coming in line) is to take out (and hold) the very clear resistance levels noted below (26.30 & 29.50).

In recovering back above Friday’s low (and with the ‘HUI 212’ gap filled) it’s still possible that this could be a whipsaw/reversal in the making. The theory being that even though the inflation stuff that should be tanking is tanking, the gold sector got on its correction back in mid-2020 and may not have massive levels of risk to the inflation herd’s selling because of that.

Technically however, the gold mining ETFs/indexes need to prove they’ve not broken down. Not the other way around.