Is The W Bottom Pattern In GDX Failing?

Yesterday we looked at the promising pattern developing in the Gold Miners ETF GDX.

It appeared to break above resistance and was ready to shoot upward if given the right catalyst.

Today doubts appeared after Bernanke's rather neutral testimony.

The next two days should give us the answer whether we will see a breakdown and fill the gap below or breakout and finish filling the overhead gap.

If the pattern does breakdown once more, all is not lost.  In fact another breakdown that establishes a higher low would be a way for the daily moving averages (not shown) to continue to flatten out and give us a lower risk entry for swing trading these stocks.

If trading gold stocks now, be nimble.