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Ominous Chart For Market Vectors Gold Miners ETF

Published 05/08/2012, 01:08 AM
Updated 07/09/2023, 06:31 AM
GC
0.38%

Shares of Market Vectors Gold Miners (NYSE: GDX)) continue to move lower, having already broken below an important support level.

GDX has already moved into bear market territory after dropping from highs above $65 in September, 2011 to lows around $$44 a share, a 32% decline to date. Bear market erritory is usually considered a loss of greater than 20%.

But the chart looks like the lows will continue. In April, GDX broke below a declining trend support line, leaving behind any logical hope for a change in trend.
GDX CHART
The trend continues to the downside.

Gold bullion is holding above similar support levels but we would suggest that the current selling of gold company shares may be telling us that gold bullion will also soon move lower.

Disclosure: Frank Kollar has been timing the financial markets since 1982, with online service since 1996. He is a dedicated trend timer and his strategies exited the markets before the crash in 1987 as well as the bear market in 2000 through 2002. During the 2000-2002 bear market and the 2008-2009 bear market his bearish positions resulted in substantial gains, all achieved by trading trends.

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