Gold Miners ETF (GDX) & Silver, Daily Charts

A daily chart view of the Gold Miners ETF, GDX and the Silver Price.

I use the Gold Miners ETF in NFTRH+ updates more than the HUI index for daily chart management because it shows the gaps that HUI does not show. Since the failure at the SMA 50 (B), we have been working to a potential A-B-C bull market correction theme, with the ultimate low possibly at 32 or even lower (if things get off the hook and GDX goes on a gap filling exercise).

From the most recent NFTRH+ update (Dec. 26) on the sector:

GDX is not surprisingly making a little flag upward from support. However, if it’s a bear flag we’d be looking for point ‘C’ before too long.

On Friday GDX began to break down from the bear flag and today it is furthering that. The caveat, as with most markets right now, is the holiday-influenced, low volume Santa seasonal. But playing it straight, gold stocks are in a technical breakdown.

I am not short but I also hold only the most core gold stock positions (after taking partial profits on them as well) and shorts against silver, which is also in a bearish near-term (but still constructive to bullish long-term) situation. I had originally thought this was a Cup & Handle, with the ‘H’ of the Head being the start of a Handle. Could still be the case, which is why we do updates. The Cup & Handle morphed to an H&S when the silver price failed at the SMA 50. The odds now favor a drop to the 25s. But as always with markets, it pays to have an open mind and alternative options at the ready.

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