{"id":445391,"date":"2019-06-22T04:39:01","date_gmt":"2019-06-22T08:39:01","guid":{"rendered":"https:\/\/goldtadise.com\/?p=445391"},"modified":"2019-06-22T04:46:13","modified_gmt":"2019-06-22T08:46:13","slug":"gdx-and-rsi-bull-market-behavior","status":"publish","type":"post","link":"https:\/\/goldtadise.com\/?p=445391","title":{"rendered":"GDX and RSI: bull market behavior?"},"content":{"rendered":"<div>\n<div class=\"m_1732793956007864057atc-entrytext m_1732793956007864057atcUser_48431\">\n<p>RSI of GDX is at 84, this is a very high level. The question is should we regard this as a sell signal (overbought) or not?<\/p>\n<p>I believe it all comes down to the stage of the market.<\/p>\n<p>Look at GDX chart over past 3 years and see what happened to GDX every time RSI got into overbought territory.\u00a0 It was an immediate reversal every time<\/p>\n<p><a href=\"https:\/\/goldtadise.com\/wp-content\/uploads\/2019\/06\/mb061819-4.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-445393\" src=\"https:\/\/goldtadise.com\/wp-content\/uploads\/2019\/06\/mb061819-4-300x227.png\" alt=\"\" width=\"445\" height=\"337\" srcset=\"https:\/\/goldtadise.com\/wp-content\/uploads\/2019\/06\/mb061819-4-300x227.png 300w, https:\/\/goldtadise.com\/wp-content\/uploads\/2019\/06\/mb061819-4-150x114.png 150w, https:\/\/goldtadise.com\/wp-content\/uploads\/2019\/06\/mb061819-4.png 700w\" sizes=\"auto, (max-width: 445px) 100vw, 445px\" \/><\/a><\/p>\n<p>Several market analysts referred to the RSI of 70+ at the beginning of June as a sell signal, in hindsight that was not a good call, but from a trading perspective it was sound advice.<\/p>\n<\/div>\n<p>Everything changed however with the GDX breakout above 23.50 level and the corresponding high RSI readings.<\/p>\n<div class=\"m_1732793956007864057atc-entrytext m_1732793956007864057atcUser_48431\">\n<p>If we are in a new gold bull market then the high RSI is indicative of a major change in trend rather than an overbought signal. (bull market behavior)<\/p>\n<p>I believe this is the highest RSI in last 5 years or more. Even higher than in the 2016 GDX run from 12.40 &#8211; 31.79. It\u2019s clearly bullish.<\/p>\n<p>Looking at the 2016 bull run in GDX (breakout at 15 level), the high RSI reading at that breakout level was certainly NOT a sell signal as the market advanced another 6.5 months\u00a0 afterwards.<\/p>\n<\/div>\n<p><a href=\"https:\/\/goldtadise.com\/wp-content\/uploads\/2019\/06\/mb061819-477.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-445392\" src=\"https:\/\/goldtadise.com\/wp-content\/uploads\/2019\/06\/mb061819-477-300x227.png\" alt=\"\" width=\"537\" height=\"406\" srcset=\"https:\/\/goldtadise.com\/wp-content\/uploads\/2019\/06\/mb061819-477-300x227.png 300w, https:\/\/goldtadise.com\/wp-content\/uploads\/2019\/06\/mb061819-477-150x114.png 150w, https:\/\/goldtadise.com\/wp-content\/uploads\/2019\/06\/mb061819-477.png 700w\" sizes=\"auto, (max-width: 537px) 100vw, 537px\" \/><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>RSI of GDX is at 84, this is a very high level. The question is should we regard this as a sell signal (overbought) or not? I believe it all comes down to the stage of the market. Look at &hellip; <a href=\"https:\/\/goldtadise.com\/?p=445391\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":2802,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-445391","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/goldtadise.com\/index.php?rest_route=\/wp\/v2\/posts\/445391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goldtadise.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goldtadise.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goldtadise.com\/index.php?rest_route=\/wp\/v2\/users\/2802"}],"replies":[{"embeddable":true,"href":"https:\/\/goldtadise.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=445391"}],"version-history":[{"count":0,"href":"https:\/\/goldtadise.com\/index.php?rest_route=\/wp\/v2\/posts\/445391\/revisions"}],"wp:attachment":[{"href":"https:\/\/goldtadise.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=445391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goldtadise.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=445391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goldtadise.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=445391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}