GDX (Gold Stocks) Breaks 16-month Downtrend

GDX, an ETF for large gold miners and the largest and most widely followed, has broken out of a downtrend that began in Q4 2012. We noted the downtrend in a recent editorial and what a breakout would imply for the near future.

GDX closed at $25.65 today and doesn’t have resistance until $30-$31. The 400-day moving average is at $34.26 and declining. Keep an eye on that, it’s a moving target for the next leg of this rebound along with the aforementioned $30-$31.