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Are Gold Miners About To Cut Loose?

Published 07/09/2019, 05:00 PM
Updated 07/09/2023, 06:31 AM

VanEck Vectors Gold Miners ETF

Are gold miners about to cut loose to the upside? A key breakout test is in play, which will go a long way in determining this important question.

This chart looks at GDX on a weekly basis over the past few years. GDX peaked three different times in 2016 and 2017 around the 25.60-25.75 range.

The rally since last September has GDX testing those highs as well as its 61% Fibonacci retracement level. The old highs and the retracement level come into play as resistance for GDX.

If GDX can break out above this dual resistance zone (old highs and fib level), look for it to attract buyers and push a good percent higher.

GDX is currently facing one of its most important breakout tests in the past 3 years. GDX bulls would receive very positive news if it succeeds in breaking out here.

Latest comments

miners so undervalued now... any novice that buys miners now will look like an expert in 13 months
Busting out of a Darvas box will be great.
Thats a BIG "IF" ...  I doubt it happens... at least from here... maybe after one more pullback..
Count all the attempts at resistance - 6 times so far! 7th time will be lucky with no looking back.  Last opportunities to long $XAUUSD and even better $XAUEUR as USD will weaken alongside
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