GDX has filled its first gap, and another lurks just below
The Gold Miners ETF, GDX, has filled the upper gap and the next one lurks lower. From an NFTRH+ subscriber update yesterday:
Yesterday was an upside whipsaw that I did not take the bait on and chase. It broke through resistance, tapped the underside of the 50 day average and now is back below resistance. It looks like it wants to fill the nearest GDX gap at 37.41, but there is another gap below at 36.18.
If that fills, it will also constitute another hard test of (as in temporary break through) the daily SMA 200. Lower support levels are noted as well, as this structure could also turn out to be a bear flag. That potential will be informed by the USD/GSR combo. USD is firm and the Gold/Silver ratio is taking on a more bullish look with each passing day. If that keeps up the pressure will remain on the precious metals, but also several other areas of the markets.
Today, almost comically, the machines are buying up big Tech and what do you know, Semi (in the wake of Broadcom “AI chip sales” hype) as a sort of perverse flight to safety (and away from the perceived inflation trade stuff, which the gold miners illogically get caught up with).
Anyway, as usual, the USD and GSR combo mean a lot. Either sooner (for the inflation trades) or later (for most everything else).
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