Paul Mosgovoy's  Instablog

Paul Mosgovoy
Send Message
Truth is timeless: “Markets never change” – Jesse Livermore, 1923 The early masters, Livermore, Wyckoff and Loeb isolated themselves from the crowd and crowd thinking. None of them ever graduated high-school and yet they each became legends in the market. Their techniques have been time-tested.... More
  • Gold: When In Doubt, Zoom Out 0 comments
    Jul 4, 2014 12:02 PM | about stocks: GDX

    If we zoom out to look at the Market Vectors Daily Gold Miner ETF (NYSEARCA:GDX) on a six-day time frame, we get a good view of the near-to-medium term.

    We see from the chart below that the wedge pattern is being tested and is holding thus far.

    It is important to note that as the GDX has moved higher over the past several weeks, the range has narrowed (in the past two weeks) and the volume has declined.

    • Note that there are still three more trading days to go before the current price-bar is complete.

    As of this post, the energy behind the move (using volume as a proxy) looks like it is evaporating.

    (click to enlarge)GDX Six-Day

    Chart by TeleChart

    If this wedge holds and the GDX declines into the pattern to test and break the lower channel line, we then have a measured move target in the 15.00 area.

    Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: GDX
Back To Paul Mosgovoy's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.