GDX - POTENTIAL DOUBLE BOTTOM - IS IT ROCKET SHIP TIME?
Updated
I believe a double bottom has formed at the 22.50 level. This could lead to a potential boost to 26 over the next few weeks.
We have seen a nice bounce off this level in the second week of October, and have been progressing well a long the daily bullish trend-line. Unfortunately, miner equities and ETF's have been selling off with the recent equity sell-off, and it's gains have been capped. I believe that as long as gold remains bullish this week and bounces over 1280, we will see the GDX take off, and it will decouple from it's relationship with the other equities, and lean more towards it's relationship with gold.
We have seen a nice bounce off this level in the second week of October, and have been progressing well a long the daily bullish trend-line. Unfortunately, miner equities and ETF's have been selling off with the recent equity sell-off, and it's gains have been capped. I believe that as long as gold remains bullish this week and bounces over 1280, we will see the GDX take off, and it will decouple from it's relationship with the other equities, and lean more towards it's relationship with gold.
Note
We had a very solid green day today, and IMO this was purely focused on gold being able to hang on to it's gains from the Hillary news on Friday (proves this is a real bull movement in gold).We are likely to see another green day tomorrow, as both gold and GDX ended the day strong. Also, the RSI is beginning to tick back up. However, I feel that we need a clean break and close above 25$ for the astronauts to leave the atmosphere.
Once this has been completed, we will see 26 shortly after.
Note
Today was another one of those days were the stock sell off affected miners.Good thing is that even with the stock sell off holding us back, we closed above 25$.
I believe that we will see 26$ this week since we were able to close above, 25$ and we have the full support of gold.
Note
We had a small sell off today even though gold went up, which was awkward, but a lot of the retailers are selling at what they think is the top, since they don't want to be left holding the bag.Price target of $26 for this week is still intact.
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