GDX, USO/UCO updates 10/6

GDX: Nice rally off today’s low, which was a 62% retrace of the Monday low (retest of 200d SMA) to Wednesday high. The TIs are pointing back up and want to see higher price. The MACD bottomed so far where it had to do; following the upward sloping (green) trendline. As ling as the MACD stays above it, it’s bullish. Back above the 50d and 20d SMAs is now required to allow for more upside.

GDX

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UCO/USO: In the prior update, see here, I was looking for ideally $11ish, but price was unable to break above the red downtrend line and instead fell rapidly below the 200d SMA again, and is now struggling with the 50d SMA. All of this is bearish. I’ve adopted the UCO count shown on the weekly chart for USO as well. Price is now most likely in major-c down targeting below $8. This decline will also be overlapping and hard to track, so we’ll go by the bigger waves. As long as price remains in the DT channel, down it is.

USO daily

The weekly A.I. gave a sell signal this week, wanting to see lower prices. Also the weekly RSI5 dropped from overbought down below 50 in a matter of 1 week, strongly suggesting the top was a c-wave spike of major-d. I expect UCO to move below $13 eventually. Then we’ll start to look for a new impulse up and a rally of a life time 🙂

UCO weekly