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GDX is currently at approx. 42 but should it drop below the 39 & 40
levels reached last May and July our analysis shows that a good deal of sellers could come forward and push GDX a large percentage lower. That double bottom needs to hold in GDX!!! Take a look at the chart below and you will clearly see why that is the case.
So writes Chris Kimble (http://blog.kimblechartingsolutions.com) in paraphrased and/or edited excerpts from his most recent post* entitled Gold Miners (GDX) about to get whacked on the head again?.
This post is presented compliments of www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.
Kimble goes on to say in further edited excerpts:
Over the past 90 days Gold has been flat while the Gold Miners ETF (GDX) has gone down over 14% [yet, even though it is] oversold compared to Gold, every time GDX attempts a rally the sellers come rushing in.
Bottom line: While many investors hang in hoping for a [much touted] rebound [see here, here and here]…a break of falling support at (1) [in the chart below] could send GDX a good deal lower!
CLICK ON CHART TO ENLARGE
Editor’s Note: The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
*http://blog.kimblechartingsolutions.com/2013/02/gold-miners-gdx-about-to-get-whacked-on-the-head-again/
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