Figure 1 is a weekly chart of the Market Vectors Gold Miners ETF (symbol: GDX). The black and pink dots represent key pivot points, which are the best areas of support (buying) and resistance (selling).

Figure 1. GDX/ weekly

GDX has already closed below the key pivot (support) at 53.92. In general, closes below support are never good. Old support now becomes new resistance. On the other hand, we find that price is sitting right at the 51.18 support level, which essentially represents the level from which prices "broke out" and moved higher back in September, 2010. I would look for this level to hold especially in light of the positive fundamentals for gold and gold miners. Bond yields are falling and historically, this has been a favorable back drop for gold. I discussed this dynamic in "Is This the Time to Buy Gold?"

Confirmation of a move higher would be made on a weekly close greater than 53.92.

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