GDX Buy Signal Setting Up Again
February 7, 2023
The weekly chart of GDX is close to presenting another buying opportunity. After trimming 16% of our holdings in the precious metals miners the last couple weeks, I am slowly putting the money back to work at lower prices. I added small amounts back again today, but am prepared to put all the proceeds back into miners this week if they and the metals can drop a little more into well oversold technical levels on the weekly charts. I will only buy when the intraday stochastics on the 30 min bar chart are oversold, to help with timing discipline. Here is the GDX, with a horizontal trend line I drew like with yesterday’s silver chart. Note that they look quite similar, which tells me they are more likely to stall their downside move than not, in the areas near the trend lines.
