Will GDX Continue Its Upside Momentum?

Market Vectors Gold Miners ETF (GDX) has been climbing since its pullback low at 25.59 on Tuesday morning, and is pushing up against its prior rally-high peak at 27.12, which if hurdled and sustained argues strongly for an upside continuation that will test much more important multi-month resistance at 27.80-28.00.

This week’s strength also means that GDX is exhibiting increasing relative strength vis-à-vis the major equity index ETFs, a condition that will continue to attract money flows in the days ahead.

Bottom line is GDX not only continues to act relatively strong, it is approaching its upside-breakout plateau atop a one-year base pattern, the penetration of which could (should) trigger considerably more upside potential in the weeks ahead.