GDX Update

On Tuesday I posted some 10 and 15 min charts that were confirmed in GDX, NUGT and DUST (inversely) GDX / NUGT / DUST Update .

Those 10/15 min charts, along with the clear rectangle range in GDX for over a week suggested a very high probability of GDX slipping below the rectangle as it has this morning...This is the chart from the post linked above from Tuesday.

15 min (and 10 min ) negatives in GDX/NUGT and 10/15 min positives in DUST all suggested (as well as the obvious range) that we see a slip below support.

GDX this morning...

GDX just under the support area of the rectangle...

However, GDX remains a very strong trending long candidate, I personally would not try to trade GDX short here because of the break under support, I don't see a great set up in DUST any way.

I'm already seeing some interesting signals in NUGT and GDX on this morning's break, but I'm still cautious, here are the signals and why I'm still cautious.

 This is a 5 min NUGT chart with the same divergence I was talking about Tuesday in the same area, but this 5 min chart this morning is already leading positive in a pretty big way which is impressive so quickly this early.

Here's why I'm still cautious (and remember the $USD positive divegrence and how the legacy arbitrage works, typically sends gold down on a stronger dollar, although QE has flipped that since 2009, but as QE keeps getting tapered I suspect the legacy arbitrage that has dominated for decades will eventually make its way back to "normal".

This 10 min chart is still in a "in line" mode, the good news is it's no longer negative as the break lower fulfilled that signal although we could still see lower prices under resistance (which was support yesterday).

I'd prefer to wait for this 10 min chart to start showing positive signals and if the 5 min keeps moving like it is, then it shouldn't be long. We do still have 15 min charts to deal with, but if there's enough migration to turn a 10 min chart positive, it's only a matter of time before the 15 min follows.

The larger picture above (30 min chart's positive) is the direction I want to trade in so I'll be watching for the 10 min to show signs of going positive.

This may be a decent candidate to phase in to, (GDX or NUGT long).