Pattern Opportunity – Long Gold Miners (GDX)
POWER OF THE PATTERN EXAMPLE
LONG GOLD MINING STOCKS(GDX)
PATTERN TO LONG GOLD MINING STOCKS (BUY GDX ) SHARED: 7/1/13
Suggested to long the miners due to 13-year support, 23% Fib and no one liking gold or the miners right now.
Gold miners ETF GDX doesn’t have a very long history to look for long term support or resistance lines, so I look to XAU.
This gold & Silver miners index goes back to the 1980’s, much better than GDX when looking for long-term important lines in the sand.
XAU index is at the bottom of a 13-year channel, at a 10-year 23% fib support line with very low sentiment.
GDX Chart….Potential bullish inverse Head & Shoulders could be forming. It is incomplete, see charts for possible road map.
XAU was also bouncing off channel support
Head & shoulders chart below reflected that GDX was breaking above a resistance line for the first time in 2013.
GDX rallied to the bottom of resistance line at $30 where we suggested to harvest gains.
Members who stuck with it were rewarded with 30% gains.
I hope this example provides helpful insight into how I attempt to find quality patterns for members on a daily basis.
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