Gold Miners ETF (GDX)

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:::: Gold in the Aftermath of French Election
By Martin Armstrong | May 9, 2017

There is still no indication that gold is breaking out and we have not negated the potential to still drop and break beneath the $1,000 level. Keep in mind that we still face the potential of a major dollar rally and can blow the doors off of emerging market debt. The election of Macron sealed the fate of Europe, so there will be no reform and a stiff wind will blow over the continental banking system. In the middle of these type of crisis, that is when we can see gold first panic to the downside, set itself up for a slingshot, and then we will have the energy to breakout to the upside. So the buying opportunity remains a distinct possibility for the near future.

Technically, we can see that gold rallied to fade the Downtrend Line intraday. We have already elected two Weekly Bearish Reversals. A May close below 1245 will be technically bearish. However, the critical support lies at the 1202-1206 level and a monthly closing below 1206 will signal a serious break ahead.

From a timing perspective, we got the April high and a drop into May. The next turning point will be July, then September and November. They appear to aligning with the Germany election which could yet produce a surprise for Europe.

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