As forecasted, $GDX fell to $31 last week and it looks like it is setting to move deeper. Let’s explore the hypothesis.
On Aug 24 formed a classical Meeting Line combo that signaled bearish reversal. On Aug 25 we got a confirmation.
With the red candle, the price moved back to below all 8/20 EMA, 50/100/200 MA lines that are placed in the worst possible bearish alignment.
The technical indicators seem to support further move down.
It would be rather a miracle if GDX advances from here on such strong bearish odds.
Is this a harbinger of what is about to happen with gold?
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