I continue to have a short-term target of $52 on the of Market Vectors Gold Miner ETF (ticker GDX). That said, I remain concerned that the my precious metal timing model signaled a sell on the 6- month model. In addition, the GDX traded towards the low of day in trading on Friday. This is despite the overall strength and wide price spread generated after the BLS' jobs report.
We also see trader indecision in trading in on the Market Vectors Junior gold miner ETF (ticker GDXJ), as the Friday's trading ended in a doji formation. Doji formations that occur in a stochastic overbought condition (like we see on the GDXJ) can signal an impending reversal. In addition, this reversal can be stronger if the doji occurred in a gapping formation.
This is while the Spider Gold Trust (ticker GLD) is trading into February 29 sell-off. On Friday, the GLD turned over more than 19 million shares. The February 29th benchmark volume was 44.1 million shares, suggesting that GLD may come under selling pressure in this range. I would also note that the GLD has completed a Fibonacci sequence to the upside, you can expect a consolidation in the price of the stock or fund after these sequences are complete.
We also see trader indecision in trading in on the Market Vectors Junior gold miner ETF (ticker GDXJ), as the Friday's trading ended in a doji formation. Doji formations that occur in a stochastic overbought condition (like we see on the GDXJ) can signal an impending reversal. In addition, this reversal can be stronger if the doji occurred in a gapping formation.
This is while the Spider Gold Trust (ticker GLD) is trading into February 29 sell-off. On Friday, the GLD turned over more than 19 million shares. The February 29th benchmark volume was 44.1 million shares, suggesting that GLD may come under selling pressure in this range. I would also note that the GLD has completed a Fibonacci sequence to the upside, you can expect a consolidation in the price of the stock or fund after these sequences are complete.
Great tips, I like the guidelines you've laid out here...helpful!
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