Miners have started their fall into a ICL. This should complete the Shark pattern and move down into the $21 area. I would expect a blast lower than the May low to complete the failed DC.
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As gold moves down towards 1243 it should find support, perhaps we get a bounce but the trend will continue lower. The 1220-1230 should be reached at 78.6% fibo. We could go lower.
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On Target for 1203
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Pattern complete, BUT, could continue lower from here. Tighten stops to protect your profits.
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ICL coming soon to miners. Target lower trend line or just below to enter GDX.
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Target was reached in DUST, you should be out of the short trade.
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Resistance for Gold at 1260. Long term trend line converges at previous top. A break above will bring a lot of traders in.
Hi bhowe, what's your predicted correction area after hit 1st target and before 2nd attempt to 2nd target
lantao517
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GDX is testing 200 DMA, it was quite strong after limited pullback, do you expect this time GDX will break 18months downtrend resistance and start to fly?
goodguy
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Great analysis. Thanks.
ArtFly
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I understand you are expecting a rebound of gold from this level....?
bhowe
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@ArtFly, I expect a pullback. IF it breaks thru it will be very bullish.
@bhowe, I don't think 1240 will be the area to buy.
1. USD is so weak that extremely short position is there, short covering will bring USD to rebound with strength to some extend.
2. GDX, as leading indicator, show relative weakness during last 10 trading days in comparison to XAU. GDX is moving down now under the resistance of several crossing DMI.
3. US10Y yield, oil rebound is calling for the bottom of US10Y yield, which is headwind for Gold.
Viewed from above crossing assets analysis, Gold is expected to move lower, even lower than last low which is 1204 (Weakest USD and 2.2% US10Y yield).
bhowe
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@lantao517, it must go to 1240 before getting to 1204. Difficult to see the extent of the fall right now.