The gold miners ETF known as GDX should find support just under its 2011 low of 49.22 if it continues to trend down, as the chart suggests it will. Two robust patterns on GDX’s daily chart give us a pair of “D” targets at 47.21 and 46.15, the latter of which is augured by a very strong impulse wave. GDX could be dragged down either by a decline in the broader stock market or in the gold price. Both of these are quite plausible at the moment, and should they occur simultaneously, GDX could slice through both of our targets. But the gold miners are widely seen as undervalued, and we might expect heavy buying in our target area. Traders looking to catch a bounce from the lower pivot should use a stop at 45.99. (Posted by Doug “harry” McLagan)
