GDX is in a short term downtrend since hitting the highs at 31.50s. It has since corrected roughly 30% and has traded sideways for the entire month of October. It is still abit early to claim we are out of the woods yet, but a close above 25 will be the initial confirmation that we are done. That being said, we cannot close below 22.50 which is the low of this current consolidation.
Seeing how Gold has made its initial move up in pre market trading, i am bullish on the performance of GDX tonight. If proven correct, this is an early stage of the Gold miner’s bull market, We are barely off the lows of the bear market bottom at 12, while GDX easily hit 65 during the last run up. At this point, i believe this is a yummy trade that i dont want to miss.