GDX Gold Miners Weekly Chart Rising Wedge Overbot Negative Divergence

Many traders searching out gold miners as a perceived safe haven as the equites markets crashed. GDX favored 52-63 range ever since Chairman Bernanke annunced QE2 in August 2010. The blue lines show negative divergence in place so this higher price action will not last. The overbot conditions and rising wedge also ensure a slap down coming. Interestingly, the redlines for the indicators show a long and strong profile that actually prefers one more mathing high after a slap down occurs, hence, an excellent candidate for an M Top as it rolls over.

Note the high volume candle in August, this needs to be retested and it corresponds to a price of 56-59. The 20 week MA is under the 50 MA, bearish. There is no compelling reason to own GDX, it is topping and rolling over. Projection is a spank down in price, then a move back up to create an M Top, but, should the CME further raise gold margins, price should simply head lower in earnest. The 20 and 50 MA's are in the 58 area, as well as that high volume candle, so that serves as an intial target once the slide starts, then lower prices from there. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.