Few days ago, I posted URL to weekly GDX chart, that was showing negative divergences:

https://stockcharts.com/h-sc/ui?s=GDX&p=W&b=6&g=0&id=p46035507598

Since PM’s had great run from start of March, some profit taking from some market participants can be expected. Bellow is annotated chart, so I can better bring my point across. While you can’t really relay too much on some lagging indicators, but when you have some good run and profit taking makes sense, then, they could add some value. Sometimes.

The idea here is, what you think market participants will think, (and what will do) if price drops bellow $35. Will they see breaking trend line and previous support lines? Will they think: “this is not good for the next few weeks”? Will some of them even think “It is all over! If your answer is “yes”, then it makes sense to anticipate some shorter term weakness. As you can see, volume was already slowing down during this move up…I’m not trying to talk anyone into selling! I’m not selling or reducing at all. I’m just doing a little bit of a guessing here. If price goes bellow 35, I would expect some selling my start to accelerate.

Oh one more thing. Markets are becoming nastier and trickier. Lots of time, when there is some obvious pattern, price starts fulfilling that pattern, just to then rapidly turn around and punish all those, who decided to react to that pattern. (I found trading these obvious patterns that fails, to be profitable) If this would happen, you would see strong enough move bellow 35, and then fast revengeful move up above 35, tricking most traders. Everything is possible. I’m sitting still. I can care less what will next few weeks do. Jessie Livermore once said, sitting still on profits is the hardest thing to do. For me, it is getting easier and easier. It must be something to do with age 😉