Loading ...OUT DAMN GAP
GDX as a proxy for Gold Stocks shows a real dilemma faced by traders.
Jump on Board or wait and watch for a gap fill ?
As Bikoo just pointed out it seems ALL bottom gaps get filled sooner or later.
Yesterday was a great out of the blue move in GDX.
BUT look at that Gap….a very large one !
Some will call it a breakout gap…but a quick gaze at the chart shows that all gaps in the last year have been filled relatively quickly.
Is this time different ? Place your bets .
Then there is the Head and Shoulders Top scenario looming.
Having said all this yesterdays move was exciting and certainly negated some bearish scenarios for now.
My bet is that it will get filled very quickly, maybe as early as mid next week.
The AUS miners are full of gaps at levels well below their current share price, and from my observations, they all get filled.
The current GDX daily cycle is in the timing band to host a DCH after which it will most likely roll over to host a DCL, which I am suggesting will be around the FOMC meeting 19 Jun.
The AUS miners are also well into their daily cycles and in the timing band to host a DCH.
Our excitement may turn to disappointment quite quickly.
I was also going to comment that we’re getting late in the cycle and should be turning down now. I’d point out though that on stockcharts, the chart for May on the $HUI is quite different than for GDX. Bad data or something else?
http://schrts.co/NhXExBcP
http://schrts.co/gedIAdti
In the most recent GDX rally of end January 2019 Gap was only filled some months later, so both scenarios are possible, but sooner or later, gap gets filled!