According to recent capital flow data, the GLD has seen redemption as market participants choose to overlook the weakening global economy and its implications. Nevertheless, with inflows into risk ETFs like SPY and HYG , gold miners could see their shares pull back from this historic gold run.
Technically, after GDX broke out of a longer-term downtrend, price action began to oscillate within a narrow . Prices are likely to pullback to channel and price action support of $19.80, while a confirmed break (or daily close below support), miners could fall to $18.85 and, potentially, $17.85 - also nearing the 50-day .
However, if the popular mining ETFs can remain above support, price action could challenge $21.88 and $23.03.
Overall price action and trend momentum still remain rather supportive to the upside.
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