A lot of bearish signals here, but one could argue that there are some pretty bullish ones too. The obvious bearish pattern is the potential H&S forming. Bellow average volume on the right shoulder is a clear signal as well as the symmetrical candles compared to the left shoulder. It's seriously almost a mirror image. But on the flip side, we have a potential bullish MA cross happening possibly as soon as this week.
The MACD is looking like it has started to curl up which is bullish. However it could just be a head fake like what we saw on the week of May 23rd (opposite). RSI level is pretty much at a neutral point and could swing either way. Gold is getting a little top-heavy right now but with the elections on Tuesday, it could keep climbing.
Bottom line, we'll know by Wednesday which way GDX is going. I'll be looking at starting a position then...
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If Trump pulls out a win, longs get a nice early Christmas gift in the morning. #Election2016
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If we close bellow 22.50 Friday, look out bellow. 21.37 would then be the next support, although I think this could go as low as 20 if gold doesn't turn things around soon. With that said, if this bounces off 22.50 on high volume, we could retest 24.50/75-ish pretty quickly.
Trade closed: target reached
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I didn't do as well as I wanted with my shorts (day trading), but this chart played out so beautifully which is a victory in itself. I never ended up swinging and stuck to day trading (which is not my preferred style). Modest gains and closed all positions today as I prefer to be cash heading into the weekend. That fugazi-trump-boom scared me too much. I'll be waiting for that 20-ish area of support for potential long swing play.