Last week’s retreat landed GDX back around the July 9 peaks, which briefly offered resistance before the broke out to new seven-year highs.
The on August 11 and 12 are also interesting. Both looked on the surface because GDX closed at the lows. However the second day formed an . It’s similar (not exactly) to a pattern, with short-term bearishness exhausting itself at a key .
Meanwhile, stochastics showed deeply oversold conditions at the same time.
GDX leaped yesterday. It tried to jump again this morning, but the bulls were too eager. Profit-takers drove it down early but they did no damage to the . Now buyers are defending the 20-day ( ).
Finally, currency markets support the strength in precious metals, with the U.S. Dollar Index hitting a new two-year low today.