Gold Miners Try to Bounce at Old High

AMEX:GDX   VanEck Gold Miners ETF
Gold miners are the classic "safe haven" sector. Not surprisingly, they've moved higher as coronavirus drives pretty much everything else lower.

Market Vectors Gold Miner ETF is the go-to instrument for most traders, with deep liquidity and very heavy options volume . ( 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 daily charts . On the weekly, it formed an inside candle the week ended February 14, followed by a breakout. That means volatility 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 bullish 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.