The daily chart Symmetrical Triangle broke upward, in line with its reputation as a bullish “continuation” pattern. In the May 9th update we noted that…
“assuming this is not some sort of bull trap, the long-standing target of 40 (+/-) is being loaded (RSI and MACD are coiled to allow for such a move)…”
The current test is to confirm that it was not a bull trap. I’ve shaded a reasonable pullback support area. If GDX were to go below the nose of the triangle at around 34, odds would increase that it was a trap. Otherwise, this is a normal pullback to address the momo that launched GDX out of the triangle and shake some people out.
Ty