Back in late November, we highlighted a buy signal for the Gold Miners ETF (GDX) on the formation of the bullish “cup with handle” pattern. The price of GDX then hit our initial money flow unit 2 target of $30.50.
The MFU-2 price target offered a pullback or pause where by gold mining bulls could add to the trade.
The pullback has been very orderly and not deep at all, which we read as short-term traders taking profit. In some, this is a mild consolidation that looks very bullish.
I think price is bullish right here and I would add on a close above $30.50 with the next price target being at $35. A move below the 50-day moving average of $20.50 would cancel this bullish trade.
$GDX Gold Miners ETF Chart
Twitter: @GuyCerundolo
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