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Replies to post #1125 on Gold Miners ETF (GDX)
06/02/17 4:10 PM
For the first time gold has closed technically above the Downtrend Line on the monthly chart settling at 1274.40 when the line stood at 1266.72. However, the Breakout Line from the 1999 low is now coming into play. This stands at 1284.43 now during June and the Downtrend Line now provides some support at 1257.05.
We are still not in a breakout mode for Technical Resistance remains at 1381.80 for June and we still have 1362 and the Monthly Bullish Reversal. We still have resistance at 1306 but support is now firming up at 1257 to 1261.
Timing wise, gold has a seasonal time for turning points in June/July. Ideally, July would be a 7 month high. May closed higher than April, but has not made new intraday highs above 1297.40, which was the April high. Therefore, reaching 1306 is certainly within reason.
There still is no indication of a major reversal in long-term trend just yet. The risk to the downside still remains largely to the prospect of a dollar rally.
So pay attention. A June/July high is possible and do not get all bullish until we breakout of 1362. The prospects of still this creating just a bull trap are high and then we can still swing down, take out $1,000, and the propel this up in a real slingshot move with plenty of energy moving into the future.
