Intraday Hourly GDX Reversal: Signs of Trouble?
It took one more day than expected.
With a slight new daily high, we’re potentially at the end of the GDX rally.
It should be noted: The past two weeks of trading have stayed within the price extremes of the wide bar posted during the week of August 20th.
This is called ‘inside action’; typically signaling preparation for the next phase … whether up or down.
Note, the inverse fund DUST pushed just 0.02 points (DUST, 19.78) below our stop level (not advice, not a recommendation).
That position was elected to be maintained … we’re still short.
The hourly unmarked chart of GDX is below:
Next, we invert the chart to mimic the inverse fund DUST:
Now, comes the mark-up:
From Wyckoff’s writings all the way back to circa 1910, he discussed ‘shortening of the thrust’.
When net progress becomes less and less … we know we’re nearing the end of the move.
Throw into the mix the high level of resistance at the GDX 33.00, and probabilities favor the downside … upside for DUST (not advice, not a recommendation).