There’s a lot going on in the senior mining index, GDX. Price action penetrated support yesterday and set up a spring (reversal) condition.
Today’s action is gap-up open with a test of the support level happening now (10:44 a.m. EST).
The chart shows the down-trend line and contact points.
The magenta, dashed arrow is the location of the initial short position (not advice, not a recommendation) via the inverse fund DUST.
As price action was rising into the morning session (with DUST declining), the short position was increased by about 14%. That area is shown as the orange dashed arrow.
We are looking for the spring action to fail and downtrend to resume.
If GDX closes lower for the day, we’ll move the DUST stop (not advice, not a recommendation) up to its session low; currently at 20.44.
Charts by StockCharts