Gold Miners ETF Hurdles Over Key Resistance

By: Mike_Paulenoff

Gold and the Market Vectors Gold Miners ETF (NYSE: GDX) are acting well as the market rolls over.  They’re both climbing in unison this morning, but more importantly the strength in the GDX has hurdled key near-term resistance at 32.90-33.00, which from a technical perspective should trigger upside continuation towards a test of more important near-term resistance at 32.00-34.00.

If the higher resistance area is hurdled, then the GDX should accelerate towards a revisit of the March high at 38.93, which will put the price structure in position to unleash the power potential associated with its still-developing 8-month base pattern.  At this juncture, only a reversal and break of 30.50 wrecks my current outlook.

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By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

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