GDX recouped all of Wednesday’s early-morning losses to close up on the day, but not before doing some damage to the daily chart. The 21.94 intraday bottom exceeded an important ‘external’ low at 22.37 (see inset) recorded on April 25, generating the first bearish impulse leg of daily-chart degree since mid-January. The effect would be compounded if the decline surpasses yet another key low at 21.30 without an intervening upward correction. If there’s a silver lining, it comes from the downtrend’s failure, at least so far, to reach the 21.20 ‘d’ target shown. It is also a tentatively bullish sign that the bounce came almost precisely at the secondary pivot, 21.97. With such mixed signs, however, we’ll back away for now and monitor the lesser charts for evidence that bulls might be regaining their strength. _______ UPDATE (May 26, 5:37 p.m. EDT): GDX became a ‘mechanical’ short at 23.54, stop 24.27, on the opening bar, with a 21.34 price objective. Use ‘camouflage’ if you intend to board belatedly, since that would effectively tighten the stop. _______ UPDATE (May 30, 2:22 p.m. EDT): The relapse that ended the week has made 21.31 (see new chart) a good bet to be reached. Since there is an alternative target at 21.17, bottom-fishing using the ‘camouflage’ technique is suggested. ________ UPDATE (June 5, 7:23 p.m.): Friday’s wild lunge negated the bearish target at 21.31 and put in play a rally target at 26.81. On the hourly chart, use these coordinates to find the target and related Hidden Pivot levels: A=12.33 on 4/14; B=26.17 on 5/22.
_______ UPDATE (June 8, 9:54 p.m.): Close but no cigar. Today’s gap-up opening brought GDX within 31 cents of the 26.81 target flagged above. The target remains viable, so watch out for a possible last-gasp had-fake. _______ UPDATE (June 13, 9:57 p.m.): The head-fake happened, all right, but it topped at 27.90, just beneath a ‘secondary’ Hidden Pivot resistance at 27.03. If the pullback hits p=26.33, you can get long with a ‘mechanical’ bid there, stop 25.53.
