Although the gold futures tout elsewhere on this page sounds a cautionary note, GDX’s vicious selloff after a bull-trap opening looks like a fake. Notice that the intraday high on the opening bar hit 28.18, exceeding an important external peak recorded two weeks earlier by two cents. That may not sound like much, but it was sufficient to generate a bullish impulse leg on the intraday charts before the shakedown occurred. Moreover, GDX was recovering nicely toward the end of the session and appeared bound for at least D=28.39, You can be confident this Hidden Pivot target will be reached if the midpoint pivot at 27.88 gives way easily. ______ UPDATE (Oct 28, 8:17 p.m.): Despite the take-no-prisoners relapse, it is happening after a bullish impulse leg was created on the hourly chart. This means we should be looking to get long. You can set up the trade with this rABC pattern, which would trigger on any 26-cent rally from a point ‘C’ low. ______ UPDATE (Oct 29, 11:55 a.m.): Anyone who followed my instruction would have gotten long at 27.03. Assuming a partial profit booked on half at p=27.28 as is customary, we’ll continue to hold 200 shares with a cost basis of 26.77. No stop-loss for the time being. _______ UPDATE (Oct 30, 8:50 p.m.): And a good thing we were not using a stop-loss, since the nasty little scumsucker swooned to 26.73 before bouncing manically to an intraday high at 27.49.
GDX – Gold Miners ETF (Last:27.45)