Loading ...Doesn’t look Bullish…at least not yet
The structure remains bearish, resistance is still in control, GDX remains in lower end of BBand, lower lows, and lower highs persist. Until this changes, I’m remaining bearish.
Look at the OBV not just diverging but starting a nosedive just like April 2013. I don’t see how GDX overcomes these plunging gold prices.
So what we have is the stoppage at obvious resistance by GDX and GDXJ … AND … that big bullish hammer at major support that EagelSeagle pointed out (by the way, we had a bullish hammer at this same support 4 days ago!).
What to do? Choose a side (cash is a side, too) and be cautious. Stay flexible, keep losses small and maybe you can jump on the right bandwagon for a nice run. I am still short, but not wedded to that position.
AU had a bullish hammer; AEM bullish engulfing; FNV had a bullish hammer with a big bounce off support at $39; NEM with a bullish engulfing; RGLD with a bullish hammer; GG also had a bullish hammer and closed above 12.50 previous support at 12.63…
Like I said, if you’re long term bullish on gold, it’s kind of hard to pass up these companies at these prices. They are priced for bankruptcy; almost all of them. They are far below book value.