Gold and Silver mining stocks rallied strongly the first eight months of the year. Over the past two months, GDX has declined over 20%. An important price test in is play right now! Below looks at miners ETF GDX.
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The rally this year by GDX, has been contained within rising channel (A). In August, GDX hit 2013 highs and the top of rising channel (A) at (1) and it reversed quickly after failing to breakout on its second attempt.
Over the past 60-days, GDX has declined over 20% after hitting resistance at (1).
Joe Friday Just The Facts; GDX is testing dual support at (2) this week. The Short-term trend (8-months) remains up. This is the biggest test for miners, since the lows that took place at the first of the year.
For GDX short-term trend to remain up, support needs to hold at (2)!!! If support would fail to hold here, selling pressure continues and ramps up!
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