Golden Nugget Breakout

July 21, 2020, 1:39 pm EDT

Golden Nugget Breakout

Gold price (GLD) and gold miners (GDX) are both rally into about 10-year highs with strong upside momentum since the stock market bottomed on March 17.

Technically, GDX made a V-shape reversal from mid March to mid May for about two months 16-38 which was about +137% gain. Then, it made a classic cup-with-handle bullish pattern from May to July. 

On July 17, GDX began its journey to even higher ground. Thus, we can use 38 as a support level when pull back occurs. 32-38 formed a base that provides cushion if it pulls back further to prepare cut loss and exit. Best scenario is to go along with GDX to another uptrend. Backed by falling US dollar and rising precious metal prices and anti-inflation assets, gold and its diggers, gold miners, should have a chance to let it shine.   

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