We clearly got a breakout of the major lower trendline this week on the GDX weekly linear chart. The question is: do we believe it? Well, from a chartology perspective we have to assume the breakout is legitimate until we are given a reason not to. But we would be remiss if we did not point out a few bullish indicators that could hint at an around the apex move higher, rather than a large decline to possibly test the January 2016 lows.

As far as GDX goes, the May low held this week but gold miner sentiment as measured by the $BPGDM is now much lower than it was in May. Patience with the miners has run thin and there may not be enough sellers left to push prices down much further.

Also, while GDX did break out of the triangle, it didn’t give us the big move many of us were looking for as of yet. In fact, the weekly Bollinger bands continued to narrow.