Gold usually performs the last month of the year, entering a strong seasonal phase. Gold miners tends to anticipate gold's move.
GDX is a Gold miners ETF.
The price is currently reaching a resistance level. Should we be bearish?
Not necessarily.
If you look at the chart you can see an inverse head and shoulders, also called a "head and shoulders bottom".
This pattern is similar to the standard head and shoulders pattern, but inverted.
Investors typically enter into a long position when the price rises above the resistance of the neckline, which is currently between 33 and 33.64.
As for the target, you measure the distance between the bottom of the head and the neckline of the pattern and use that same distance to project how far price may move in the direction of the breakout (see green arrow). The target I have is about 37.74.
The pattern is only confirmed when the neckline is broken. If so, don't expect the price to reach its 37 target immediately. I have placed all the resistance lines on the chart.
Trade safe!
GDX is a Gold miners ETF.
The price is currently reaching a resistance level. Should we be bearish?
Not necessarily.
If you look at the chart you can see an inverse head and shoulders, also called a "head and shoulders bottom".
This pattern is similar to the standard head and shoulders pattern, but inverted.
Investors typically enter into a long position when the price rises above the resistance of the neckline, which is currently between 33 and 33.64.
As for the target, you measure the distance between the bottom of the head and the neckline of the pattern and use that same distance to project how far price may move in the direction of the breakout (see green arrow). The target I have is about 37.74.
The pattern is only confirmed when the neckline is broken. If so, don't expect the price to reach its 37 target immediately. I have placed all the resistance lines on the chart.
Trade safe!
Comment:
Pattern failed