Hello traders well as you can see here the gold miners etf has retraced back up to multiple forms of resistance. Resistance has formed in the form of the 50 Moving Average, previous support turned resistance which of course is also a critical Fibonacci retracement level, and the multi-month descending trend-line. Also, price formed a doji / hanging man (Whatever you want to call it I really dont care as long as you understand the meaning of the candlestick form), which shows that buyers did try and bid price back above resistance but failed to do so (hence the high volume for that candle). Which means that the winning hand is starting to tilt in the way of the bears. So for said reasons I'm going short with stops above the 61.8% retracement. 1st short target is near the baseline of support, 2nd target is at the Fibonacci extension.
Best of luck to all, cheers! Hope you find the analysis helpful.
Trade active
⋅
Stop loss order trailed down to 17.46
Comment
⋅
1st Target Reached
Trade active
⋅
Stop loss moved to B/E
Comments
Neel_K
⋅
Super !!!!
Daniel.B
⋅
Thanks Neel! Apologies for the extremely late response, just now saw your comment. haha
traderCarl
⋅
good luck... I've gone long GDX calls. if that descending Red line gets taken out, shorts will unload, causing price to explode upwards. True the 50 day avg. has been acting as resistance. Time will tell.
Daniel.B
⋅
Yep it'll at least go to the 22.30 area if there's a short squeeze. Or it can just range between 12.50 & 17.50 lol Good luck to you also Carl, thanks for the input! =)
Daniel.B
⋅
Update: New Low made this week, on the way to target number 2. =)