GDX Weekly – Originally from Dec 2015
Some may recall this chart I posted last Dec when I noted OBV was beginning to diverge from price action. I also noted a parabolic curve that was fitting price movements. Although most are dismissing any possible resistance coming into play, I still see it immediately on top of us. Collectively this looks like high risk long territory to me. Prices correcting back to the parabola wouldn’t shock me, perhaps making a higher low. Although I pretty much dismiss everything Armstrong says, this would fit his timing that gold may not be truly ready to make a sustainable move until 2018. Just throwing out some alternative scenarios we need to watch. Everything must be considered!
There’s that Apr ’13 gap too.
(Nail-bitingly)interesting times…
potential around the apex move?
sorry Mark, not questioning your general expertise, but I do not buy that scenario of a parabola retest via a complex correction from here.
We are yet to see known values. A more likely scenario is we gap the apex and end up with an abandoned base.
buy whats being bought. pretty simple.
not saying we do not get some sort of correction at any time but trying to trade the short side is going to burn many who are not experienced swing traders. I have no doubt you will make it work but others here may blow it.
this sector can remain overbought and irrational longer than the bests can remain solvent.
there not many bulls around. maybe me and a handful of others on the planet. most are just not on the sector, full stop, completely unaware. so its a very small audience looking at all this action.