Negative Confluence for Gold Miners GDX ETF
Commodities / Gold & Silver Stocks Aug 17, 2009 - 12:18 PM GMTBy: Mike_Paulenoff
The big picture of the Market Vectors Gold Miners ETF (NYSE: GDX) argues strongly that the price structure has additional downside ahead that points to a test of the Jan-Aug support line, now at 35.65. The juxtaposition of price, the RSI, and MACD at this point looks to me like the GDX is vulnerable to considerly more downside than 35.60.
In fact, I am expecting a test of the July low at 34.05, the success or failure of which will determine if the GDX will head for 30.00 thereafter. The combination of a correction in general in equity prices, a stronger dollar, and relatively weak commodity prices form a potentially extremely negative confluence for the GDX.
Sign up for a free 15-day trial to Mike's ETF Trading Diary today.
By Mike Paulenoff
Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of
Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction
© 2002-2009 MPTrader.com, an AdviceTrade publication. All rights reserved. Any publication, distribution, retransmission or reproduction of information or data contained on this Web site without written consent from MPTrader is prohibited. See our disclaimer.
Mike Paulenoff Archive |
© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.
