As forecasted, GDX registered a green week. However, the miner closed Friday and the week with a pair of very interesting candles that could cast a cloud on the perspectives of further rally. As we are going into the last week of the month, let’s evaluate the miner’s chances from different perspectives.
I would like to remind that Q3 candle formed a very strong bearish formation that expects at least one lower low in Q4. It has not happened yet. The odds of this event are very high and I continue to view all rallies as a short-term ones until proven otherwise.
The monthly candle is very strong for now and if it closes above the September’s one, it would be a strong bullish statement. The price is just below 20 EMA and it has a good chance to climb above.
If GDX in October closes above ~$31 ($32.99 as I type), this could be a first bullish sign. Every other closure would be bearish.
Five more days to go – let’s see whether the price holds.
The week closed green, as forecasted. However, the candle. It could be a false alarm, but I would like you to be aware.
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