On September
16, I was bullish on the Market Vectors Gold Miners ETF (symbol: GDX).
As you can see in figure 1, a weekly chart of GDX, prices had broken out
of a nice base formation, and after testing the breakout point (62.82) several
times and after holding up better than most issues in this bear market, GDX
seem set to continue higher. So much for those plans.
Figure 1. GDX/ weekly
Last week saw prices break decisively through the 62.82 support level and
below the 40 week moving average. This is a failed breakout, which is never
good. Prices are currently back within the trading range. 52.47 is support,
and a close below this level would be very bearish. For now, we find GDX in
the middle of its range. I am certainly less sanguine about this issue considering
the breakdown and considering that this is a bear market.
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