Sunday, June 22, 2014

GDX (Gold Miners ETF) is testing 12-month falling wedge resistance; Bullish momentum suggests further upside

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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