What a difference a week makes.
On September 16, I was bullish on the Market Vectors Gold Miners ETF (symbol: GDX). As you can see in figure 1, a weekly chart of GDX, prices had broken out of a nice base formation, and after testing the breakout point (62.82) several times and after holding up better than most issues in this bear market, GDX seem set to continue higher. So much for those plans.
Figure 1. GDX/ weekly
Last week saw prices break decisively through the 62.82 support level and below the 40 week moving average. This is a failed breakout, which is never good. Prices are currently back within the trading range. 52.47 is support, and a close below this level would be very bearish. For now, we find GDX in the middle of its range. I am certainly less sanguine about this issue considering the breakdown and considering that this is a bear market.
