February Gold futures are reversing higher and this should support the Gold Miners ETF NYSEARCA: GDX for a “short-term” trade higher.
As you can see in the Gold Miners (GDX) chart above, momentum reached an oversold zone and looks to be turning higher.
Note as well that similar “short-term” trading setups have presented themselves recently. Expectations should be within reason, as recent bounces have been contained to a matter of days. I think the 50-day moving average around $38 is attainable. Any move below the recent lows near $33 will be bearish. So traders need to set stops.
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
