It appears that gold, and gold miners, are at an inflection point.
From the chart patterns, there are two views, one bullish, the other bearish.
The bullish view (descending broadening wedge) follows:
This view, which I presently favor, has an ultimate objective in the 32 to 33 range for GDX.
If this view is correct, we should see upside almost immediately this week.
The bearish view (ascending broadening wedge) follows:
From the chart patterns, there are two views, one bullish, the other bearish.
The bullish view (descending broadening wedge) follows:
This view, which I presently favor, has an ultimate objective in the 32 to 33 range for GDX.
If this view is correct, we should see upside almost immediately this week.
The bearish view (ascending broadening wedge) follows:
This view suggest we could see a breakdown of the short term uptrend.
The target price is 22 for GDX or even slightly lower.
Although I do not favor this view currently, a break of the trend line would suggest it is the correct one.
Overall, with possible government shutdown approaching, combined with the dreaded month of October, it seems that the former interpretation of the charts may trump the bearish case for gold miners.
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