Are Gold Miners about to “Cut Loose” to the upside? A key breakout test is in play, that will go a long way in determining this important question.
This chart looks at Gold Miners ETF (GDX) on a weekly basis the past few years. GDX peaked three different times in 2016 and 2017 around the 25.60-25.75 range.
The rally since last September has GDX testing those highs as well as its 61% Fibonacci retracement level. The old highs and the retracement level come into play as resistance for GDX.
If GDX can breakout above this dual resistance zone (Old highs and Fib level), look for it to attract buyers and push a good percent higher.
GDX is currently facing one of its most important breakout tests in the past 3-years! GDX bulls would receive very positive news if it succeeds in breaking out here!