GDX Channel Update
Here’s the chart I’ve been showing for a few weeks. Following this morning’s bear trap we ended up beginning a consolidation back within the channel. Hugely bullish action with confirming volume. False breakouts and breakdowns seem to be the norm anymore as Mr Market seems to know which levels trigger the most stops and buy triggers. When prices reverse you should expect a strong move in the opposite side of the break.
I’ve also added annotations showing the illusory H&S structures one could read into solid uptrends. This will continue to happen all the way up. As cheesy as it may sound, you shouldn’t fight the trend. Today was a gift which we don’t get often.
Well we all know what happened after the biggest bear trap of them all on a clear cut H&S when the GDX broke 13 to the downside in January.
Good point guys…false breakdowns galore
From a Psychological perspective…its the Bullcer Crowd…I mean…when you want in…how long can you wait ?