GOLD Miners BreakoutGold miners is coming out a long long long consolidation and finally broke out of it. With all the money being pumped into the economy, investors are starting to look for scarce assests.
GDX trade ideas
Elliott Wave View: GDX Extends Higher to 7 Year HighElliott Wave view in Gold Miners ETF (GDX) suggests the rally from March 16, 2020 low is unfolding as a 5 waves impulsive structure. Up from March 16 low, wave (1) ended at 27.21 and pullback in wave (2) ended at 23. The ETF then extends higher in wave (3) towards 32.27 and wave (4) pullback ended at 29.37. The 45 minutes chart below shows the internal of wave (3) which unfolded as another impulse of lesser degree.
Wave (4) correction ended as a triangle. Wave A ended at 29.37, wave B at 31.12, wave C at 29.45, wave D at 31.13, and wave E of (4) ended at 29.45. The instrument then extends higher again in wave (5) with potential to end at 32.61 – 33.87 (blue box). This move will also complete wave ((1)) and thus ends cycle from March 16, 2020 low. Afterwards, the instrument can see larger pullback within wave ((2)) to correct cycle from March 16, 2020 low in 3, 7, or 11 swing before turning higher again.
We don’t like selling the instrument and GDX can always extend higher as the structure is in 5 waves. Furthermore, the sequence from January 2016 low appears incomplete with 100% – 123.6% Fibonacci target towards 36 – 40.6.
Gold miners ETF 30min chartconsolidating nicely, breaking out of one wedge, and now holding strong. a break of 31 should give way for a quick move to 32 retesting the multiyear resistance above. $GDX $NUGT $GLD
Gold Miner ETF at Long-Term Resistance as Optimism SpreadsGold and gold miners have been some of the go-to names in these days of coronavirus and cratering GDP growth.
The Market Vectors Gold Miner ETF has rallied sharply in the last month as investors look for firehoses of liquidity to boost precious metals. But that’s placed it at risk of conditions improving. What if the crisis starts to lift? What happens to gold if investors rotate back to cyclical parts of the market like banks and industrials?
The price chart may be reflecting those possibilities because GDX has been unable to close above $31. (This has been a key resistance area since running back to April 2013.) This week had another failure at that level – despite physical gold inching to a new high.
The resistance around $31 is now a potential risk-management level. GDX also has liquid options, creating the potential for income traders to sell credit spreads.
Overall, a lot of bullish news is priced into GDX at this level. But that also creates downside risk in price if conditions improve on Main Street.
GDX wave 4 is in progress need to be retrace 30.8 and then fall GDX wave 4 is in progress need to be retrace 30.8 to 31.5 and then fall towards 27.7
The B wave of Wave 4 is in progress and expected to retrace 50% or 61.8 or 75% (Between 29.88 to 32.22)
If 27.7 does not hold please close your long as we can expect more sharper large drop
GOLD ETF 1D ASCENDING TRIANGLE LONG TRADEAscending Triangle are repeatable trading chart patterns.
Ascending Triangle chart patterns will have a directional bias depending on the previous incoming trend.
Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern.
What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart).
Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place.
Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement.
When you see descending Volume bars and descending ATR line (which indicates volatility) this shows
a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern.
Trade Management after there is a breakout candle close.
1 - Position size (compare volume bar to volume ma line).
a - Breakout candle must be 100% of average volume for a full position size.
b - If 75% of average volume then ½ position size. (To find 75% of Volume
look at the charts volume settings – divide smaller # into larger # = 75%+)
2 - Enter two trades.
3 - SL for both trades will be 1.5 x ATR.
4 - 1st trade TP will be 1 x ATR.
5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price.
6 - When 1st TP hit – move 2nd trade SL to breakeven.
7 - Adjust the 2nd trade SL to follow price.
*8 – After Breakout candle – if price closes back into chart pattern close trade
*9 - When breakout candle is more than 1 ATR from breakout candle open.
a - Enter 1st trade at candle close with ½ position size.
b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open.
c – Price should pullback to that pending limit order for 2nd trade.
d – If Price returns back into chart pattern close trade before SL is hit.
GDX broadening wedge ideathe broadening wedge as well as the overbought rsi lead me to believe we may have reached the top or at least are going to see a bit of a retrace.
GDX - breaking out!GDX at critical juncture. Chase seems like it's on. Looking for some volume to get this ready for the next level.
GDX bearish volume divergence + critical support levelskinda bearish for the short term super bullish mid/long term for gold and gold mining stocks GDX
Two Patterns in GDX "New Bull" Price ActionSince the reversal on the 16th, two dominant chart patterns—symmetrical triangle and continuation channel—have been playing out. I didn't spot the latter until the price action smashed out of the triangle, but there are some notable fibonacci pivots. Price is currently sitting at the crucial .618 level which it has bounced off of at least four times (depending on how you count).
Looking for a further breakout or a retrace on Monday. The bearish divergence in volume makes me think the latter is more likely but sentiment about the Fed's pump and/or a move in the price of gold are strongly in play.
(Novice trader, not advice, feedback welcome, &c.)
GDX Testing Horizontal TrendlineGDX tested a historic longitudinal trendline on weakening volumes today as equities soared, closing just north of the slowest VAMA band. Next two days critical for GDX and GDXJ . I'm short both ETFs and hope to see a repeat of March 25th.
(Caveat: not only does this post not constitute financial/trading advise, it is the opinion of a rank amateur.)
Great setup for $GDX$GDX Nice break-out here.
Be aware that this is a highly manipulated asset, so set your your stops on a closing basis.
GDX expecting 23 support to hold GDX expecting 23 support to hold and a buy opportunity is there.. It looks like Elliot wave classical B wave is complete but i feel time correction is not yet complete.. expecting a support around 23 and possible bounce from there for short term.. expecting...B wave to conclude by Mid April ..Elliot A wave correction took 3 weeks and 1 day to complete.. and B wave need to be at least 4 weeks and this reason i expect support at 23 to hold and may be target 28.5..
GDX weekly closed above cloud bottomAlready said enough about it's strength. I would use hourly cloud bottom as stop for long.
GDX: Long opportunity for the patient tradersGDX , AMEX:GLD and GC1! are all correlated
- GDX lost 40% of it's peak value in 3 weeks - and shot thru the 3-year lows
- this represents a "golden" opportunity - pun definitely intended :) - to someone who wants to ride the opportunity and invest in gold - GDX provides a way to do that with small capital
- i would consider watching the GDX ATM Calls for 4 to 6 months out - but only establish the trade once the reversal to the upside is confirmed and we have a good and reliable target count
- this may happen in few weeks depending on when demand returns to gold by large investors - who had to liquidate to support their equity positions
-- this is another trade idea for the "patient fisherman"
(edited - my edits now showing)
