GDX can have a large drop if gold continues to move down
Comment:
sold some of my jnug position, fun playing ping pong
- there is now a reversal candle above a gap on the S&P. A move down and Gap fill would at least temporarily push gold higher.
- Due to fundamental developments, the evolving R:R of staying short at this support level doesn't make total sense considering the fundamental developments.
- Although bank holiday, Gold slowly grinding up and spending time above 1490. Also a strong buying wick on the last recent drop. There is a decent chance we will move back to 1500 and top the of the similar descending trend line on gold. - Rejection from here would cause me to become a bear again, ESPECIALLY if we break 26.50 on GDX. - In that case I would probably reenter a hedge position with DUST.
When I closed my DUST position I bought a JNUG position. - I am expecting at least a small bounce from here to the trend line with a reasonable chance of breaking through 1500 on gold or 1520. - Which I think will signal resumption of an uptrend on GOLD and GDX. I will be quick to get out on weakness and look to get back on DUST on a break of 16.50 on GDX.