A week ago I posted my long term forecast where I discussed a possible continued downtrend and the importance of the 33.25 level – https://investingangles.com/2021/01/18/long-term-forecast-vaneck-vectors-gold-miners-etf-gdx-2/. After today’s closure I continue to maintain my view.
The daily candle opened rather optimistically and even tried to touch the 20 EMA. However, it was brutally rejected at that level and ended the day well below the 8 EMA. Note how the daily RSI is supporting the downtrend.
The week only started and I would like to emphasize the very narrow range between the 20 EMA and the 50 MA. A break in any direction could mean an established trend. Though all signs seem to support the bears.
The monthly closure below the 8 EMA would mean an established trend – three candles closed below the 8 EMA. A closure below 33.25 would almost certainly confirm the lower prices ahead.
I continue to expect the stock to fall to the area of 12-13 in the next 2-6 months. I identified this possibility on October 28 and am watching the wave unfolding. Below I am posting the original chart made on October 28, 2020. Again, the next four days will be crucial indeed for the stock and its path for the following 2-6 months.