Gold Miners ETF (GDX)

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The Ord Oracle: GDX Update
By: Tim Ord | June 29, 2022

SPX Monitoring Purposes: Long SPX on 5/31/22 at 4151.09.

Monitoring Purposes GOLD: Long GDX on 10/9/20 at 40.78.

Long Term SPX Monitor Purposes: Neutral.



Yesterday and last Thursday, we said, "A rare signal generated on GDX. The last time this type of signal was generated was last October low. The signal is the RSI for the Bullish Percent index for the Gold Miners index. When the RSI for the Bullish Percent index falls below 5 (current reading is 4.40) the market was at an intermediate term low." This bullish signal lines up at major support for both GDX and XAU (note on chart above). Both XAU and GDX have been in a sideways trading range since August 2020. Its likely the current buy signal will work out and both XAU and GDX will rally back to their resistance, which is 170 on the XAU and the 40 range on GDX. For the XAU, the next time it gets up to resistance near 170 will be the fourth time. The more times an area is tested, the more likely the breakout will occur, so it likely the breakout will come on the fourth test. This sideways trading range for both XAU and GDX has been going on for nearly two years, and a two-year trading range suggests the next rise could last two years.

Tim Ord,

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