Positives: GDX closed at 22.74 near a prior support level of 22.50 Decreasing volume over the last few selling days Option Chain Call weighted
PUT OI 104,891 Bid sum 0.3 Volume 9,544 to 20.5 CALL OI 174,409 Bid sum 0.34 Volume 15,565 to 25 Call side is currently favored for the option chain of 6/16 on the close of 6/12 range from 25 to 20.5 for GDX. Call OI > Put OI and Call Bid > Put Bid Call V > Put V.
Negatives: RSI indicating a bearish crossover, as well as 4 day MA negatively approaching 8 day. Continuing negative momentum after XAUUSD failed to breakout of the weekly resistance.
Overview Longer Wedge Pattern from the beginning of the year after a longer term downtrend. Resumption of the downtrend is possible, but a push higher maybe made over the next few days. Gold is currently overbought with 71% long positions according to investing.com's economic calendar. Meaning positions might be added to before a dump occurs after another rejection from the weekly downtrend occurs.
Hypothesis is a push back to 1280 in XAUUSD or the weekly resistance level will have a positive move in the miners before the longer term downtrend continues. Supported by the option chain and support levels. Price movement below 22.20 negates hypothesis from loss of support zone.
Comments
RobinChong
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Nice analysis. Do you track option flow?
LuckyDinAZ
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@RobinChong, Thank you, currently I view it as a snapshot to get a overall sense of the current trend. Eventually I would like to track t like RSI or other indicators with an active read, to help confirm trends and elucidate when a trend change is approaching.
LuckyDinAZ
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Entries and exits can be used for NUGT 3x Leveraged ETF position.