GDX (Market Vectors Gold Miners ETF) has had bullish price
action since the minor double bottom at 21.93 (28/29 May), reaching 26.10 last
Thursday (Jun 19), up 19% for the 3-week period.
GDX now is testing the 12-month falling wedge resistance as
shown on the weekly chart. Despite the daily RSI now in the overbought
territory, the bullish momentum near term suggests scope remains for further
upside. A break through the wedge resistance would fuel gains towards 28.03 and
31.35 next. The converging 20/50 week moving averages in the 24.50 area and the
200 day moving average at 24.01 should provide support for any dips. On the
downside, a break below 24.00 should caution for weakness towards 21.93.
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