Gold Miners ETF (GDX)

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The Ord Oracle
By: Tim Ord | September 23, 2020

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Above is an intermediate-term view for the XAU (GDX) going back to 1984. Momentum rules everything. The bottom window is the monthly Slow Stochastic for the XAU/Gold ratio (a momentum indicator). When the monthly Slow Stochastic reaches above 85 (current at 87.55), it's late in the game for the current uptrend. Slow Stochastic needs to turn down to suggest the final high has been seen; it has not turned down. To turn down, the Slow stochastic the monthly XAU/GOLD ratio would need to go sideways or turn down. Silver is entering its weakest quarter, which starts now and runs into late December. Silver has a percentage of being higher in this time frame of only 32%; this also goes for gold. As we write this, momentum has not turned down; it just reached an extended level. Our trading plan for GDX has not turned to more short-term trades that may last a week or two. A possible setup could form on a test of the "Selling Climax" low of 8/11.

Tim Ord,

Editor

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