Loading ...W Bottom Correction – GDX
As I posted here up until last week, I thought we were forming an H&S continuation pattern. Well I don’t think that’s the case anymore and it looks more like a W bottom, very similar to what we saw last Nov-Jan. A corrective 62% bounce fits very nicely here and could give bulls false hope that the bottom is in. Again, I don’t care if the bottom is in or if this is a corrective move….it’s a tradable setup and I want to participate. I’m looking for a GDX bounce to $18 area. To my eyes, the preponderance of evidence supports the move. I’m always keeping a watchful eye in case this falls apart but it looks very compelling to me.
Edit: Dave – I added an HUI chart per your note. Note the significance of the 50 & 200 MAs. I like the chances of HUI bouncing above 150 from here and probably pretty quickly. 200MA will likely be resistance again and would present a far better shorting opportunity than from current levels. Of course if things totally fall apart and my premise is no longer valid, I will bail immediately.
Mark, FANTASTIC charts….great perspective…HUGELY appreciated. I took a sizeable NUGT position on Friday looking for this upside. One question…I notice Hui closed a smidgeon above the 50 dma…do you think we drop below this for a couple of days or rally hard? Good luck with your trading.
The feedback is greatly appreciated Dave! I added an HUI chart for your consideration.
Excellent MACD study. IF that diagonal trend line is violated, I go long.