Courtesy of Chris Kimble.
Two months ago Gold Miners ETF GDX created its first bearish reversal pattern (bearish wick) while testing falling resistance. A couple of weeks later it created another bearish reversal pattern (Bearish wick) and then selling pressure took over and GDX fell 10% quickly.
The decline of late now has GDX testing rising support, where GDX created a bullish reversal pattern (Bullish wick) to close out the past week at (2).
Several bullish reversal patterns have taken place over the past 9-months along this rising support line.
What is the desired price action of miners bulls the next week or two? A rally off rising support at (2), taking it back to restest old highs at (1).
If upside action does not take place and 9-month support is broken at (2), look for GDX to start moving towards trading range support at the $17.34 level.
What GDX does the next week should send a very important message from the mining sector.
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