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Update Request: GDX

|Includes: VanEck Vectors Gold Miners ETF (GDX)

The following is a commentary on the Market Vectors Gold Miners ETF (NYSEARCA:GDX) that has been requested by "zaw77".

Let's first start with the bigger picture and look at the SPDR Gold Trust ETF (NYSEARCA:GLD).

The weekly chart below shows that GLD is in the middle of a wedge pattern that began in mid-2013.

GLD Weekly

Chart by TeleChart

There is a down-trading channel shown in red that has not been penetrated to the up-side.

We have a reversal bar for the week. However, Friday's session in GLD was a narrow bar that did not make much progress.

The picture appears to be ambiguous and has a down-bias. From a trading standpoint, this in not a low-risk area.

A good example of what is meant by low-risk was Thursday's entry in the Direxion Russell 1000 Financial Bear 3X ETF (NYSEARCA:FAZ) at this link.

Taking the ambiguous gold situation into the gold miner's analysis we have the daily chart of GDX below:

GDX Daily

Chart by TeleChart

Price action in GDX is testing the underside of the axis line that has been in place for several weeks.

Friday's close made upward progress by one-cent over the Wednesday close. At this point, that one-cent does not indicate a large demand pressure.

There is a Fed meeting coming up next week. We have already seen that the previous announcement had a temporary upward move that was promptly reversed.

With that in mind, it is reasonable to expect that there will be some type of volatility in the sector next week.

Disclosure: I am long FAZ.