123Tom's TA study group

[Citrati]

Answer.

http://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=1&mn=3&dy=0&id=p03673596778

Quote from Kitco article Friday.

"When the Fed promised three rate hikes this time last year, the gold price bottomed the next day as it was also sold hard into the final Fed meeting of 2016. However, the miners did not bottom until a month later after a brutal four year bear in which the GDX lost 85%.

What gives me pause on gold bottoming this time just after the final meeting this week, is the equity market breaking out of a two year consolidation as “risk on” is still in play here. The gold price looks very vulnerable now technically and could easily drop below $1000 oz before making a final low as early as Q1 next year.

As I have been mentioning in previous posts GDX ,the ETF for large cap miners, needs to hold the major weekly support level of 20 in order to sustain a technical bull market in the miners. The bull’s last chance would be a close today above 19.80 in the GDX. Given how severely oversold the sector is and sentiment being worse than this time last year, the miners do have a chance of reversing today and closing above this level. The big money shorts have made a killing and could begin taking profits before many begin heading off to the Hamptons for the holidays. However, this bounce eventually needs to exceed the 22.50 area rather quickly in order to give me confidence of a chance at a firm bottom here....."

Disclaimer: As always any reader should apply their own reason and abide by their trading rules.