GDX-Gold Miners Update

On April 10th, Tuesday this week, I put up GDX analysis, both long term and short, that post can be found here.

The gist, GDX broke a significant support level and the longer term isn't looking great, but in the short term, the break of important support almost always leads to an upside move/shakeout. I find it interesting that there were positive divergences suggesting GDX would make a move higher on Tuesday, the reason GDX is moving higher probably has a lot to do with gold moving higher, although GDX is outperforming GLD (2.75% today vs .88%). However gold is moving most likely due to the Dudley comments that the market is taking as dovish. So how is it GDX was under accumulation days before Yellen and Dudley goosed the market? Well it all could just be the typical volatility shakeout, but I'm not completely sold that was the only reason.

From Tuesday's post,

"I would think GDX could see a quick move up and probably somewhat volatile/strong. I would consider a position in GDX here (long), but I would also have tight risk management on the trade"

 The long term break in GDX

 Today's move, stronger then GLD

 Here are the divergences I mentioned Tuesday, 30 min positive, now leading positive.

 Series of 5 min positive divergences at the lows.

And yesterday's late day positive divergence.


I guess I find it a little interesting that so many asset classes saw late day positive divergences yesterday.


In any case, GDX has a healthy gain for the day, however at this point, I don't see why it couldn't put in further gains.