GDX, UCO update August 15

GDX: negative divergences are starting to set in on the daily chart and although the trend is still up longer term we need to see how it can get to $35. A set of abc’s maybe developing off the July low, but that’s speculation from our end and we can’t be certain. For now we’d be watching the 20d SMA for continued support, followed by the 50 SMA. A break below the July low will mean the uptrend has ended.

GDX.jpg

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UCO: reached our first target as outlined a week ago. where c=a. price is now in between the two black descending trendlines and it needs to break above the upper to target the c=1.382 and c=1.618 extensions at $10.88 and $11.47. We’ll have to see if price can get there. For now all TIs are pointing up and no negative divergences so it’s certainly possible.

UCO