Gold Miners Update – Another Decline Coming in GDX

Miners are back-testing the breakdown trendline and the 10-day EMA ($39.66). The technical pattern resembles an ABC measured move to a target encompassing $33.50. Prices could turn back lower between now and Friday. It would take progressive closes above $40.00 to promote an alternate scenario.

The correction into an intermediate low is filled with twists and turns, some convincing – do not be fooled.

The current rebound in gold should be limited to $1900 to $1920 before prices turn lower. We maintain an optimal cycle target of $1740 – $1780 in the opening weeks of October.

How markets react to tonight’s presidential debate will be interesting. Prepare for increased volatility.

AG Thorson is a registered CMT and expert in technical analysis. Premium members receive daily market updates. For more information, visit here.

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