Five days ago I issued a reversal Alert on GDX as it formed a Bearish Engulfing on the daily scale, rejecting the rally to below the 36.28 level. The last 3 trading days confirmed the concern by the formed candles.
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“.
If GDX continues the decline this week, it could complete a powerful Tower Top on the weekly chart. Level to watch for April 30 – 34.25. If GDX closes below 34.25, I would expect the much lower levels for GDX in the nearest future.
The most recent GDX Monthly analysis:
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