GDX spent nine trading days and it can’t get over 23.63 resistance. Yesterday (Wednesday Jan 18) we thought it could possibly overcome 23.63 to produce a cycle inversion, which would lead to the beginning of a new cycle. But it didn’t happen. We are selling GDX short at open. Stop loss 23.63. Stay tuned. Our short order was filled
Today is the 18th bar in the daily cycle, it should produce a bottom. Instead it made a higher high on the 17th bar. It’s knocking on the door against the 38% retracement at 23.63. If today it takes out 23.63, it will have more room on the upside. Overcoming 23.63 would indicate a beginning of a new daily cycle. Watch out for 23.63 level. Long term it is still very bearish.
GDX had 18 weeks selloff since mid August 2016. It finally bottomed on 12/20/2016 at 70.7% retracement of the entire advance it made in 2016. It is currently in the 3rd week of the new weekly cycle. It is 12 days into the daily cycle. The top @ 23.35 made on 1/5/2017 met 38% retracement resistance of 23.63. The top is in. We expect
