Monday, June 9, 2014
Is GDX really in a bear flag?
I dunno. Does this look like a bear flag to you?
Sure looks like it, eh? We even have diminishing volume as it tries to rise.
But then I go and look at GDXJ and I see something different:
Looks like GDXJ has completely battled back from its drop. It's back over its EMA(16), it's back over its Bollinger mean, the violated support at ~$35 has been recovered, and there were two good days of buying volume to end last week.
I've been suspecting that the GLD break of support was a bullshit move, entirely caused by an OpEx smackdown. Certainly we haven't seen any follow-through at all, and if you've been following gold for the past few years you darn well know by now that violated support usually sees follow-through.
So maybe this breakdown in gold was a headfake?
Doesn't mean it'll go back up, of course. But it was instructive to watch for follow-through on the OpEx smackdown.