GDX: Weekly: 14.03.2021

During the first two weeks of March the GDX bulls battled really hard. First, they saved the stock at 31.22 level, below which the Head & Shoulders target of 16.54 would open. And second, they managed to make the first powerful steps towards confirming a reversal of the 7-month bearish trend. Let’s explore:

Monthly

The monthly candle looks very optimistic now. If the month closes with a green candle, it would be either a Bullish Harami or a Bullish Engulfing. Though the latter would be quite a stretch. The month is still young and anything could happen.

Weekly

The first week of March closed with a Bullish Harami, just above the 100 MA line. The second week closed with a strong green Maribozu, the first step of confirming the Harami.
In order to confirm the Harami (and reversal), the stock needs to close above 34.35 the next week.

Daily

The daily candles have the strong bullish odds on their side. On Friday, an enormous rally not only closed at a new high (in this trend), but also produced a daily 8/20 EMA cross and moved RSI above 50. All these are viewed as solid support for further rally.

SUMMARY

  1. If the next week closes above 34.35, the reversal of 7-month bearish trend would be confirmed.
  2. If the next week closes with a green candle, but below 34.35, the confirmation is likely to be received one week later.
  3. If the week closes with a red candle, the odds would flip to the bearish side with possible continuation of the 7-month bear trend.

%d bloggers like this: