So this thing certainly is not on the Bullish Trend List.
Trend following the sell-off, The Gold Miners Index $GDM $GDX is testing another S/R (Support and Resistance Price Level) at $576.60. So this thing certainly is not on the Bullish Trend List. When it returns to a trend in excess of, or at a minimum of, 10% annualized over 200 days ma, it’ll be back on the Upward Trend List. This index is one of 20 we monitor.
The Gold Miners Index (GDM) (GDX) continues to break S/R (Support and Resistance Price levels) on a Weekly and Monthly Basis. The next Price Reversal below is at $568.10, trading at $581 today. The short term oscillators such as The RSI are oversold. So, we’ll if a BTD (Buy the dip) develops.
Gold Miners Index (GDM) (GDX) the Index is breaking long term support. The Monthly and Weekly S/R (Support and Resistance Price Level) is $598.50, currently trading intraday at $593.62. The Index today is trading under 10% annualized growth rate, over 200 days, but over 5%, over 200 days.
Trend following The Gold Miners Index (GDM), in a strong long term Upward trend, stronger than the S&P 500 Index (SPX), the next Monthly Bullish S/R (Support and Resistance Price level) is found at $661.90. So those already long, will look to nibble some more, and those not long may look to establish a new position at a close over the March High. There are various ETF options, such as the $GOAU. So as usual, all the trend following best practice ideas remain the same, multiple positions, small position size, stop out when your risk parameter is hit. A starting trend following portfolio could be the $GOAU, and the $SPY.
way outperforming the S&P long term, this ride may be “on hold”
The Gold Miners Index has been outperforming The S&P 500 Index long term. Looking at 32 Weeks, Weekly, we find a major S/R (Support and Resistance Price Level at $598.50( which happens to be The Month Of March Low), trading today before the close at $612.80. A close under $598.50 would signal the Uptrend is probably broken, or at least it will start trading weak relative to the S&P. So we’ll see what happens this week. For the newbs, gold miners can be extremely volatile, both Up and Down. Small position size allows the investor to ride the draw-downs, and sleep at night. These things drive The Lo Vol crowd crazy.