The Gold Miners ETF has been in a trading range for about a week, after making a potentially major low on May 16. While bouncing up and down, GDX has traced out several attractive patterns, two of which have already rewarded tightly-stopped trades at their midpoints. Unfortunately these two patterns point in different directions, and we are left to guess where GDX is going next, to its bearish ‘D’ target at 42.23 or its bullish ‘D’ at 46.90. The good news is that hidden pivotry enables bulls to use a bearish pattern by going long at the lower target. For a trade, we would buy at 42.26 with a stop at 41.99. For an investment, we would size the purchase appropriately and omit the stop. (Posted by Doug “harry” McLagan) _______ UPDATE (June 1, 2:15 p.m. EDT): GDX decided that its destination was 46.90, and it zoomed up to 46.85 during morning trading for a quick 7% gain. It has hovered just below that level for two hours now.
