GDX: CANDLES SPEAK: 18.03.2021

I believe the the recent rally in GDX has stopped hard today with a Gravestone Doji / Hammer that is entirely within the body of yesterday’s candle, making them a powerful Bearish Harami combo. Moreover, both candles were rejected precisely at the daily 50 MA. Based on this, the odds are back to the dark side.

My forecast from the weekly update still stands:

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

Tomorrow will the day to decide.

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