Tuesday, March 18, 2014

GDX Weekly

GDX Weekly

Price between  EMA 21 and EMA 55
Testing EMA 55 resistance @ 28,11$
Resistance zone : 28$(EMA55)-30,45$

Possible pathways:
a) GDX breaks EMA55 and tests Resistance @30,45$ (Neckline) then corrects
b)GDX Rejects EMA55 and corrects

Correction Targets: Between fibo 61,8%-76,4% i.e GDX @22,5 $-24,5 $

In that case there will be an Inverted Head & Shoulders pattern (IHS) with the right shoulder at ~22,5-24,5 $ projecting @ 40 $ (30% upside potential)

So , possible Buy zone @ 22,5-24,5 $
                     with Target @ 35-40 $
                       Stop Loss @ 19,80 $