A lot of traders bought the breakout in GDX last Friday chasing the price....
This doesn't look good. We not just broke back into the ascending triangle but also printed a key reversal.
I think we will be attacking the 200 SMA tomorrow and the support will not hold for too long before it breaks and price is falling to the lower trendline of the triangle at 21.13$.
The demand for this asset is weakening, and when price breaks below the lower support, it is a clear indication that downside momentum is likely to continue or become stronger. The most common price targets are generally set to equal the entry price minus the vertical height between the two trendlines.
If gold is printing a decline to 121x GDX will be retracing to the lower trendline and price will marginally break below it.
If you are holding GDX or GDXJ ( or JNUG, NUGT) you have to be ready for this scenario...
If things are turning worse we might print a low at 16,42$. I know it seems irrealistic now but we have to be ready tagging the target price counted from the height of the triangle.
This doesn't look good. We not just broke back into the ascending triangle but also printed a key reversal.
I think we will be attacking the 200 SMA tomorrow and the support will not hold for too long before it breaks and price is falling to the lower trendline of the triangle at 21.13$.
The demand for this asset is weakening, and when price breaks below the lower support, it is a clear indication that downside momentum is likely to continue or become stronger. The most common price targets are generally set to equal the entry price minus the vertical height between the two trendlines.
If gold is printing a decline to 121x GDX will be retracing to the lower trendline and price will marginally break below it.
If you are holding GDX or GDXJ ( or JNUG, NUGT) you have to be ready for this scenario...
If things are turning worse we might print a low at 16,42$. I know it seems irrealistic now but we have to be ready tagging the target price counted from the height of the triangle.