Gold Miners ETF Poised for Another Downside Loop

Gold Miners ETF Poised for Another Downside Loop
By Mike Paulenoff,

Purely from a technical perspective the most salient of the daily chart of the Market Vectors Gold Miners ETF (AMEX: GDX) is the fact that for the past month all of the action has been confined between the declining 50 DMA (50.26) on one hand the rising 200 DMA (45.89) on the other. Let's notice that a similar "between the averages price contraction" occurred between mid-Nov and mid-Dec, but the upmove off the 200 DMA rocketed the GDX right through the 50 DMA. The recent action between the averages shows that the GDX did climb sharply off of the rising 200 DMA, but failed to hurdle the 50 DMA, which has since become a ceiling on subsequent rally efforts. My pattern and momentum work argue for another loop to the downside into the 46.50-45.80 area at a minimum prior to the next attempt to hurdle the 50 DMA.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!