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  • GDX: Reverses At The Down-Trend Line 4 comments
    Jun 9, 2014 4:09 PM | about stocks: GDX

    The Market Vectors Daily Gold Miner ETF (NYSEARCA:GDX) tested the trend-line that has been in place for the past two months.

    From the daily chart below, we can see that today's action is typical for what would be expected as a trend-line test.

    (click to enlarge)GDX Daily Chart

    Chart by TeleChart

    Price action labored its way up to the trendline in the early session and is now retreating and increasing downward speed (and volume) into the close.

    For the GDX to penetrate this trend-line, there needs to be a pent-up demand for the entire sector. At this point, that demand has yet to materialize. Therefore, GDX appears to be in position to continue lower.

    Note that the overall market (S&P 500) has reached an apex and may be stalling-out.

    This potential pivot from up-to-down is the trend-change that has been discussed for several weeks as the "helping factor" to enable (force) the GDX to continue lower.

    Disclosure: I am long DUST.

    Stocks: GDX
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Comments (4)
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  • ptTL9
    , contributor
    Comments (287) | Send Message
     
    Paul,

     

    GDX is at 22.8 and DUST at 27.15, are they both reversing downtrend and it's time to get long GLD, NUGT, JNUG?
    Hate to be on the wrong side on this trade, it will be like a tide.
    No positions at this time.

     

    Thanks and GLTU
    10 Jun 2014, 09:58 AM Reply Like
  • Paul Mosgovoy
    , contributor
    Comments (120) | Send Message
     
    Author’s reply » Thanks ptTL9,

     

    I view this as short covering...... :-)

     

    Not really nice to sit through, but certainly not unusual given the past few days of activity.

     

    GDX has posted a high of 22.90 and is retreating away from that. If the hourly bar closes back into the range, that would indicate a false breakout.

     

    At this point, it looks to be a bull-trap. Of course, the market will let us know the truth.

     

    Thanks,

     

    Paul
    10 Jun 2014, 10:09 AM Reply Like
  • Paul Mosgovoy
    , contributor
    Comments (120) | Send Message
     
    Author’s reply » If The GDX hourly closes below 22.77 or so, it gives an excellent tight stop (22.90 on GDX) for anyone that wishes to position long on DUST.

     

    It might be stopped out the same day, but the risk (potential loss) is low.
    10 Jun 2014, 10:16 AM Reply Like
  • ptTL9
    , contributor
    Comments (287) | Send Message
     
    Thanks, Paul
    10 Jun 2014, 02:32 PM Reply Like
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