GDX Beautiful upward channel on the daily.
If touches bottom of the channel and bounces, GO LONG.
If it breaches the bottom of the channel:
- WAIT for channel bottom retest and then GO SHORT or
- Gamble on correction momo and GO SHORT
PTs are based on height of channel, nearest price gaps and fibs
LEFT CHART Oil: I expect oil to hit the top of longterm channel (orange line) where it will likely be rejected softly, then break it again and retest... at about that point the 20DMA may cross the 50DMA which will cause a strong surge (like the past gold rush)... my PT 36,09 but could be higher.
MIDDLE CHART Gold: ...
On the left was the most similar gold spike I could find in 08/2011... I expect a similar retrace here boosted by the possible SPX reversal candle on Friday. Should SPX momentum continue, gold may go to 1140ish before I do a reevaluation.