Gold Miners ETF (GDX)

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PHLX Gold/Silver Index (XAU) - New Pattern Forming »» Daily Summary Analysis
By: Marty Armstrong | August 29, 2020

The Gold & Silver Cash Index has been in an uptrend for the past 3 days closing above the previous session's high. The broader rally has unfolded over the past 13 days. Currently, the market is trading in a neutral position on our indicators but it is trading strongly higher up some 5.72% from the previous session low. Our projected target closing resistance for the next session stands at 15743. We need to close above that projection to keep the upward advance in motion. Our Stochastics are all pointing upward while our internal momentum models are in a bullish posture.

While the historical perspective of the of this market included a decline from the major high established back in 2010 moving into a major low in 2016, the market has bounced back for the last 4 years. The last Yearly Reversal to be elected was a Bearish at the close of 2019. However, where there were 2 reversals elected, there was also a Super Position which took place with 1 Bullish Reversal elected warning that this immediate signal has been suppressed by the opposite force warning we may not see immediate follow through.

From a perspective using the indicating ranges on the Daily level in the Gold & Silver Cash Index, this market remains neutral with resistance standing at 15741 and support forming below at 15150. The market is trading closer to the support level at this time.

On the weekly level, the last important high was established the week of August 3rd at 16536, which was up 20 weeks from the low made back during the week of March 16th. We have been generally trading up for the past 2 weeks from the low of the week of August 10th, which has been a move of .0809%.

Interestingly, the Gold & Silver Cash Index has been in a bullish phase for the past 4 months since the low established back in March.

Critical support still underlies this market at 9071 and a break of that level on a monthly closing basis would warn that a sustainable decline ahead becomes possible. Nevertheless, the market is trading above last month's high showing some strength.

The Gold & Silver Cash Index opened within last year's trading range which was 10825 to 6585. Right now, the market is still trading within last year's range with the last print at 15285. The last time such a similar pattern took place was 2016. Nonetheless, the market is still trading above the opening print for the year which was at 10786. As long as this market remains trading above 11404 yet above the opening print on a closing basis, then a year-end closing in this posture will warn that we could have a knee-jerk low in place this year.

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