Market Vectors Gold Miner ETF is the go-to instrument for most traders, with deep liquidity and very heavy options . ( GDX averages about 140,000 contracts a day, more than triple the runner-up, Barrick Gold , according to TradeStation data.)
GDX has had some interesting patterns on both its weekly and . On the weekly, it formed an inside candle the week ended February 14, followed by a breakout. That means calmed as prices squeezed, but then it started moving again.
GDX quickly spiked to a seven-year high of $31.84 before pulling back to test the early-January highs $29.70. If this level holds, it would mean old resistance is new support -- another signal.
Remember that GDX rallied hard between last May and August (after years of going nowhere). It then spent six months digesting those moves. The current price action could signal the consolidation is complete and now a continuation to the upside may be expected next.