Gold Miner ETF Hitting Trendline
Gold miners are one of the worst-performing corners of the market this year. They’ve bounced recently, creating a potential opportunity for the bears.
This chart of the Market Vectors Gold Miners ETF shows the downward-sloping trendline in place since August. Notice how prices are stalling after touching it again.
Second, the 100-day simple moving average (SMA) is around the same level. This is similar to its last intermediate peak in early January.
Third, notice how stochastics show an overbought condition.
Finally, the current zone around $34 has a lot of relevance running back to last summer. It’s where prices rallied out of a bullish flag in June and then held in late November. It remained the bottom through February. If GDX remains below it, the verdict could be: “old support, new resistance.”
The macro backdrop is also negative for gold because the economy is rebounding and earnings are expected to surge this reporting season.
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This chart of the Market Vectors Gold Miners ETF shows the downward-sloping trendline in place since August. Notice how prices are stalling after touching it again.
Second, the 100-day simple moving average (SMA) is around the same level. This is similar to its last intermediate peak in early January.
Third, notice how stochastics show an overbought condition.
Finally, the current zone around $34 has a lot of relevance running back to last summer. It’s where prices rallied out of a bullish flag in June and then held in late November. It remained the bottom through February. If GDX remains below it, the verdict could be: “old support, new resistance.”
The macro backdrop is also negative for gold because the economy is rebounding and earnings are expected to surge this reporting season.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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