Yesterday we looked at the gold price. This morning let’s take a look at GDX, which is still normal. Let’s look at some parameters needed to keep it normal and loaded for upside.
The daily chart shows GDX easing a bit in pre-market, with an implied open of 52.90. That is short-term support as you can see the lateral cluster and the (green dotted) EMA 20 right there. Next support is the (blue) SMA 50 and a little gap right there as well. All is normal.
What would be abnormal in the short-term would be a loss of 50.30, which would bring pretty good odds of a larger correction to 46 and a gap fill down there.
Bottom Line
GDX daily technical situation is normal and consolidating, perhaps to refuel for more upside.
The near-term bullish situation would abort if GDX loses the 50 day average (51.49) and then 50.30.
It’s always a good idea to have parameters in your pocket ahead of time.
