Today GDX formed a Bearish Engulfing on the daily scale, rejecting the rally to below the 36.28 level I have been talking for several months.
As I indicated in my monthly update on April 1, “a (bullish) reversal would be confirmed if GDX closes above 36.28 on April 30“.
Forecast for Friday
The odds are strongly on the bears side and there is a chance of a sharp reversal tomorrow. A red candle closed lower than today’s low would confirm the reversal and most likely help to form a bearish combo on the weekly time frame.
p.s. There is also a bearish build-up in Gold Spot and gold futures. Though it’s not as strong as the one in GDX, but is still worth noting.
The last GDX Monthly analysis: