Perseus
Long

GDX - POTENTIAL DOUBLE BOTTOM - IS IT ROCKET SHIP TIME?

AMEX:GDX   VANECK VECTORS GOLD MINERS ETF
I believe a double bottom has formed at the 22.50 level. This could lead to a potential boost to 26 over the next few weeks.

We have seen a nice bounce off this level in the second week of October, and have been progressing well a long the daily bullish trend-line. Unfortunately, miner equities and ETF's have been selling off with the recent equity sell-off, and it's gains have been capped. I believe that as long as gold             remains bullish this week and bounces over 1280, we will see the GDX             take off, and it will decouple from it's relationship with the other equities, and lean more towards it's relationship with gold             .

Comment: We had a very solid green day today, and IMO this was purely focused on gold being able to hang on to it's gains from the Hillary news on Friday (proves this is a real bull movement in gold).

We are likely to see another green day tomorrow, as both gold and GDX ended the day strong. Also, the RSI is beginning to tick back up. However, I feel that we need a clean break and close above 25$ for the astronauts to leave the atmosphere.

Once this has been completed, we will see 26 shortly after.
Comment: Today was another one of those days were the stock sell off affected miners.

Good thing is that even with the stock sell off holding us back, we closed above 25$.

I believe that we will see 26$ this week since we were able to close above, 25$ and we have the full support of gold.
Comment: We had a small sell off today even though gold went up, which was awkward, but a lot of the retailers are selling at what they think is the top, since they don't want to be left holding the bag.

Price target of $26 for this week is still intact.
Trade closed manually
I know this is late but a double bottom is a reversal pattern. GDX would have to be trending downward to form a double bottom. Good work on the charts though!
Reply
what do you think?

snapshot

Reply
Perseus SupportResistanceTrader
I think we could potentially see another test of 22.50, it really just depends on how gold behaves this week.

However, I do see a lot of similarities between this set-up and the set up off the bounce during June (cup and handle).
Reply
United States
United Kingdom
India
España
France
Italia
Polska
Brasil
Россия
Türkiye
Indonesia
Malaysia
日本
한국
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing Priority Support Ideas Published Followers Following Private Messages Chat Sign Out