This chart of the Market Vectors Gold Miners ETF shows the downward-sloping trendline in place since August. Notice how prices are stalling after touching it again.
Second, the 100-day ( ) is around the same level. This is similar to its last intermediate peak in early January.
Third, notice how stochastics show an overbought condition.
Finally, the current zone around $34 has a lot of relevance running back to last summer. It’s where prices rallied out of a in June and then held in late November. It remained the bottom through February. If GDX remains below it, the verdict could be: “old support, new resistance.”
The macro backdrop is also negative for gold because the economy is rebounding and are expected to surge this reporting season.
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