Exhausted GDX has broken its $25 support today in last minutes trading. Tomorrow on June 22 it will be trading down. $24.08 is the most likely target for tomorrow. We may break it on Friday if UK vote to remain in EU.
Major miners I track gaped down today and behave much weaker than yesterday. Most of them painted inner bar today which most likely will be broken down tomorrow. Volume increase as we fall down confirming weakness. Other indicators show that move down has only started.
Major miners I track gaped down today and behave much weaker than yesterday. Most of them painted inner bar today which most likely will be broken down tomorrow. Volume increase as we fall down confirming weakness. Other indicators show that move down has only started.
Here is what I think will happen in near future:
Tomorrow we going to get a "stay" results from Brexit. The major outcome of that I see DAX, NKY, DOW and S&P move much higher. DOW may even break out of the flag and start new bull trend. All of that will be terrible for gold and gold miners. Anyway, latest COT report showed that they hedged 1 to 4 in short positions so they will be fine :).
After July 1 positive jobs report (it must be positive to restore Fed's credibility) we going to hear a lot about rate hike in July. That should push Gold through 1200 after a week of consolidation between Brexit and that report. So I would advise to keep gold shorts for some time. Then we going to get that rate hike :) in July and then we get Hillary elected.
Don't worry - be positive. I might be wrong but chart and traders' actions pointing downward.