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Gold: GDX May Test The March Highs

|Includes:VanEck Vectors Gold Miners ETF (GDX)

Taking a look at the Market Vectors Daily Gold Miner ETF (NYSEARCA:GDX) below, we see a rising wedge and a potential to test the March '14 highs.

(click to enlarge)GDX Daily ChartClick to enlarge

Chart by StockCharts

It is difficult to determine from the chart whether or not price action is going to move lower first or just power on higher.

If one is long on GDX, then the easiest money may already be over. If short on GDX or long the Direxion Daily Gold Miner Bear 3X ETF (NYSEARCA:DUST), then tight stops are in order.

As indicated in this morning's release, the more probable trade at this point in time is being short the iShares Russell 2000 ETF (NYSEARCA:IWM) and to leave the gold market alone (or move stops up on long positions) until there is more definition.

However, that is just a personal preference. Everyone is responsible for their own accounts.

Disclosure: The author is long TZA.

Stocks: GDX