$gdx approaching falling-window resistance.

12 ביולי 2016

XAUUSD and TIP had a couple of down days and I anticipated yesterdays GDX pullback at the open. I jumped on a few small buys between 30.20 - 30.25 and sold my July 1st buys into the 30.60 recovery. Just like in December, the miners are lagging and I would definitely start to scale-back all weak hands before the 31.33 - 32.14 falling window resistance.

This small (less than 1%) position is just to gamble on the breakout in the event that it moves to the upside quicker than anticipated. I guess I could pair this with something cheap like JDST but my position right now is negligable.

As far as technicals go, %B is showing some divergence on the Daily. This downward move occurred when it hit 1.0 but relative to the trend, this should not have been in O/B territory. To me, this is an early sign that the trend starting a small correction downward-- possibly with the window-resistance acting as the turning point.

This correction should bounce in the 27.00 area (previous support).

Now, obviously, the trend is still up-- gold is still up. TIPS are still up. I'm still long here but I'm managing my risk. I'm holding small positions (5% of my original position, less than 1% of my available equity) now in #gdx and hmy.

I'm expecting another pullback at the open today in gold miners, followed by further downward movement until the bounce and finally an attempt to break out of the falling window. I'll be attempting to catch these wicks in accumulation mode and build a decent position.