GDX possible bottoming out... or?
Over the last couple of weeks/months, perhaps even since Aug 2020, GDX had been a tad challenging but also very intriguing.
Firstly, the number of fake outs by GDX is numerous over 2021.
Secondly, it is followed by failures for lower lows.
Third, an opportunity appears to be forming... it is almost time.
The weekly chart on the left failed the 55EMA yet again, and returned to close near the range low, on a solid candlestick. Technicals are bearish, as is price action.
The daily chart demonstrates how quick a breakdown it can have, but also appears to have bounced off a long term steady support. The candlesticks show a classic example of bearish outcome, and even a possible technical bounce in the coming week.
Technicals however are skewed slightly towards bearish.
Overall assessment is that we have a chance of GDX bottoming out, but also at risk of a breakdown, possibly.
Firstly, the number of fake outs by GDX is numerous over 2021.
Secondly, it is followed by failures for lower lows.
Third, an opportunity appears to be forming... it is almost time.
The weekly chart on the left failed the 55EMA yet again, and returned to close near the range low, on a solid candlestick. Technicals are bearish, as is price action.
The daily chart demonstrates how quick a breakdown it can have, but also appears to have bounced off a long term steady support. The candlesticks show a classic example of bearish outcome, and even a possible technical bounce in the coming week.
Technicals however are skewed slightly towards bearish.
Overall assessment is that we have a chance of GDX bottoming out, but also at risk of a breakdown, possibly.
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