Some thoughts about the GDX, precious metals, and the USDollar
There has some short term bullish action in the metals and gold miners even as the US dollar has continued to rally which to me is longer term quite bullish. It suggests to me when the dollar finally makes a correction or changes course we could possibly get a great rally in metals.
The DXY has passed the .618 level which suggests to me it will likely continue up to at least the .78 level there there are some pattern and Fib resistance correlations (see chart). There is already a bearish divergence in the weekly RSI.
There is also a negative reversal in the daily RSI in the GDX. I would not be surprised to see the GDX and metals fall one more time, perhaps to the .78 level in the GDX or even close the small gap.
Take care and Hapypy New Year. May it be a profitable and joyous one for you.
The DXY has passed the .618 level which suggests to me it will likely continue up to at least the .78 level there there are some pattern and Fib resistance correlations (see chart). There is already a bearish divergence in the weekly RSI.
There is also a negative reversal in the daily RSI in the GDX. I would not be surprised to see the GDX and metals fall one more time, perhaps to the .78 level in the GDX or even close the small gap.
Take care and Hapypy New Year. May it be a profitable and joyous one for you.
