Wow would you take a look at that! The GDX has gone from $54 $64 per share in just the month of August. Ouch, it hurts to miss that. The only reason I noticed it is because I was looking to trade it, and I remember that it was down in the low 50s. And here it is suddenly at $64 and share its 52 week high.
The thing to notice about this $64 level is that the GDX has been forcefully repelled from here three times this year alone. And it's not just this year as historical chart in the weekly timeframe below shows. I hope that this is enough to convince you that zone between $64 and $65 is very strong resistance. The probability that the GDX will go higher increases after a break of resistance.
I don't know which way the GDX will break here, but something is going to happen. One thing for sure the GDX will not stay at $64 a share. At least history is on my side.
We already missed the $10 run from $54. So, I am more than willing to give up another dollar to buy some security. In other words I suggest that we buy the GDX when it breaks $65 a share with the stop somewhere close under $64.
We already missed the $10 run from $54. So, I am more than willing to give up another dollar to buy some security. In other words I suggest that we buy the GDX when it breaks $65 a share with the stop somewhere close under $64.
There is no way to catch the 10 point run-up we just missed, but that doesn't mean we can't make money on what happens next long or short.
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