GDX update 02/08

GDX: it has been in a long down move since its high made last month. But, all things come to an end and we’re right at the 1.382x Fib-extension for a nice b/ii wave, which extended beyond the typical 61.8% retrace. Clearly price needs to move above long-term resistance: $24.5-25.5 before it can rally for real. If it does, than symmetry alone targets $30. If not long yet, one could start to enter here as price is oversold and the RSI5 at levels from which normally rallies start to happen (blue horizontal line). Patient investors could wait for positive divergence first. A break below the recent December low is Bearish and would suggest something else is going on: a much more complex correction. Stops can be placed accordingly.

GDX