First off, GDX is unsurprisingly bouncing to fill Monday’s gap down. It is just under the daily EMA 20 and resistance in the 38.50 area. So nothing has changed technically, and I am keeping my partial hedges, pending such changes. If GDX were to take out 38.50 I’d have to consider getting rid of the hedge, at least very temporarily as the next proving ground would be the SMA 50 (39.72), which was originally anticipated as the next resistance area after 38.50 (+/-). I may also keep the hedge in that event as well. It’s going to be based on several factors of incoming info.
But some of what I view as higher quality larger miners and royalties (from my holdings, AEM, KGC & RGLD) are in good technical standing. It is likely that either they will lead the sector back upward or the sector will bring them down.
But for now, AEM has a bullish daily chart above the SMA 50 and back above the support shelf corresponding with it.
KGC checks in similarly.
Royalty RGLD as well, and it is technically bullish in a symmetrical triangle above the SMA 50. A negative caveat here is the big volume on the two days that RGLD made its recent high and then gapped down.
All of these charts have RSI and MACD that are coiled in ways that could resolve bullish. So again, the question is whether the quality stuff can lead the sector or the other way around? The above provides some updated perspective in that these charts – unlike GDX – have sprung back bullish (for now at least during a holiday week signals that may not be 100% trustworthy).
