Broken Resistance Turns Support for GDX
Support / Resistance
The Gold Miners ETF (GDX) is in for a big test as broken resistance turns into support. GDX broke resistance around 41-42 with a big surge in September. This level turned into support, and held, in early October. After a sharp decline the last two weeks, GDX is once again testing this important level.
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Looks like the Gold Miners Bullish Percent Index ($BPGDM) "Confirmed Bearish" on a Triple Bottom break not too long ago as well. Probably needs to blow off some price froth before reversing it.
Posted by: Keith Shepard | October 30, 2009 at 08:37 PM
Hi Arthur. Your comment about broken resistance for GDX turning into support has to be right. But with the extent of the distribution you could argue support is at say 39. As Maynard Keynes would have said we are just uncertain.
Kind regards, M.H.
Posted by: Michael Hammett | October 31, 2009 at 04:40 PM