Gold has a strong tendency to bounce on the 200 EMA. It happened many times in the last year. If gold can't break through that 200 MA, I would short it. Because if it doesn't cross, There wil be the formation of a Double top pattern, which is a bearish indicator. I am presently bullish on gold (GDX), but if we can't get through that 1260$ level, I'll go fully ...
After the elections, the stock rose back to 40$, the same price it was about a month ago. The stock was denied to go higher and is now going back down. If you look at the RSI, it's making lower highs even though the stock is back up at 40$. The markets rose after Donald Trump's election and that was really weird, i think it was a bubble and it's about to pop.
There is an important resistance level in the area of 40$ and the stock can't seem to break it. It tried many times but it remained unsuccessful. On top of that, we can see an important RSI divergence which can give us a hint on which way the breakout will be. The fear of the elections will also drag the price down below the triangle.
Their is a very strong resistance level and it seems like LPI can't get passed it. I mean the stock tried several times and it didn't work. Now, it's losing momentum and its going to go back in the area of twelve dollars, where i drew the up channel's trendline. What do you guys think ? Buying at twelve dollars may be a good thing.