VanEck Vectors Gold Miners ETF (NYSE:GDX) has declined nearly 60% in the past 8 years. Does that mean the bear market in GDX is about to end? Let’s investigate why GDX is testing one of the most important price zones in years.
GDX has created a series of higher lows along line (1) over the past few years. It has also created a series of lower highs along line (2) over the past 8 years.
Last year, GDX broke above line (2) for a few months at (3). Weakness after the breakout has GDX testing line (1) and (2) as support at (4) this week.
GDX is facing one of the most important support tests in years at (4), which could become a rallying point for the mining ETF.
Aggressive miners traders will find this to be a rare place that they can establish a long position with a tight stop just below the dual support test at (4).
If GDX break below support at (4), look for it to trade much lower as that is a very important price zone for miners.