Gold Miners ETF (GDX)

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~~~ NY Gold Nearest Futures Analysis ~~~
By Martin Armstrong | March 25, 2017

Analysis for the Week of March 27, 2017

We should see a trend change come this month in NY Gold Nearest Futures so pay attention to events ahead. Last month produced a high at 126490 and so far we are trading neutral within last month's trading range of 126490 to 119970. We need to breakout of this range to confirm the direction. Therefore, a close above will be bullish and a close below will warn of a possible decline. As of the close of Fri. Mar. 24, 2017, the market is immediately in a bullish posture near-term suggesting it is quite strong trading above the December 2016 high. NY Gold Nearest Futures closed today at 124850 and is trading up about 8.40% for the year from last year's closing of 115170. Thus far, we have been trading down for the past day, following the high established Thu. Mar. 23, 2017.

On the weekly level, the last important low was established the week of December 12th at 112430, which was down 5 weeks from the high made back during the week of November 7th. We have been generally trading up for the past 2 weeks from the low of the week of March 6th, which has been a move of 4.75% percent.

Some caution is necessary since the last high 137750 was important given we did obtain three sell signals from that event established during July 2016. Critical support still underlies this market at 111520 and a break of that level on a monthly closing basis would warn of a further decline ahead becomes possible.



Expansively, my far-reaching view recognizes that the current bearish progression in NY Gold Nearest Futures reflects only a temporary reaction within a broader bull market trend since we have not elected any Yearly sell signals on our model. Furthermore, the NY Gold Nearest Futures remains somewhat neutral at this present moment trading within last year's range of 137750 and 106100. Presently, we have made a reaction low in 2015 which was a 4 year decline. Since that reaction low of 2015, this market has bounced for 2 years, but it remains still within last year's trading range of 137750 to 106100. Keep in mind that we may yet complete the decline to a new low this year if we do not exceed last year's high of 137750 and close above the Yearly Bullish Reversal at 130790. Failure to make new lows this year warns that we could extend down into next year since their is a split between the high intraday took place in 2011 and the highest yearly closing which unfolded in 2012. There remains a long-term risk of an extended rally into 2017 in real terms adjusted for inflation. Only if new highs unfold beyond that target in time is it possible to extend the rally as far out as 2018.

So far we have elected a Yearly buy signal from the low of 2015. Nevertheless, we must focuse upon overhead resistance standing at the 130790 level at this time.

Aiming on the immediate momentum is Bullish on the weekly level yet we did penetrate the week of March 13th's low. This is warning to pay attention since last month had closed higher so the upward momentum is weak on the monthly level. Currently, the market in technically neutral since it is still trading inside last year's trading range. On the weekly level, the last week of 3/20 was an outside reversal to the upside which is implying we have a bullish bias currently. For now, this market in an uptrend posture looking at the weekly level. We see here the trend has been moving up for the past 14 weeks. The last weekly level low was 112430, which formed during the week of December 12th, 2016. The last high on the weekly level was 126490, which was created during the week of February 27th. Taking a broader view, this market is in a downward trend on all our indicators looking at the monthly level. Eyeballing the direction of this trend, we have been moving down for the past 7 months. The last high on the monthly level was 137750, which was created during July 2016. The last monthly level low was 104540, which formed during December 2015, 2015. We have generated a sell signal so some caution is required.

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