GDX - the beginning of the endThe GDX Gold Miners is one of my personal favourite, and I have had been following it closely over the last couple of years. Since August 2020, where 95% of position was cleared, there was hardly any sustainable long term rally, albeit the March to June 2021 rally that I actually missed. Since then, it pulled back, and is about to revisit the last major lows. This is the beginning of the end... as in, the bearishness is ending. Now, this could take months to pan out and perhaps about 5% downside risk to go.
The daily chart had prices at a lower range having gapped down early in the week. Unlike equities, the recovery was mild, if at all, with Friday gapping down instead. In the form of a megaphone, the range is now going to widen, but am expecting more downside to the target of about 31.50-32.00.
Technicals support the weakness, albeit not extremely weak... just not strong. Looking for a higher low, with MACD bullish divergence in the month to come. Would not be surprised if it breaks down of the megaphone and then breaks back in again to be super bullish.
Until then... I am sitting on my hands.
