Gold Price Forecast – Gold Miners at Critical SupportThe gold mining ETF’s are testing critical support – the next few trading days are important. If support holds in GDX and GDXJ, then we could see a springboard effect and rally to fresh highs. A failure here would set the stage for a more profound correction.
GDX DAILY CHART
After bottoming in November, GDX has underperformed and failed to make new highs while gold spiked above $1600 over geopolitical concerns. The next few days are crucial. To maintain the potential for an immediate breakout, miners must hold support and turn higher. Failing to keep this level and closing below $26.40 would imply a deeper correction to around $24.00.
GDXJ DAILY CHART
The pattern in juniors resembles a bullish rounded bottom. The current pullback should find support around $39.50. Once complete, the uptrend should resume and break decisively above $43.00. To register a breakdown, GDXJ would have to close below $37.50.
From a cyclical point of view, our work suggests metals and miners should remain strong into February and presumably March. A more profound breakdown seems unlikely, but it’s something we are monitoring.
Currently, our swing trading system is holding leveraged long positions in miners and silver.
AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For more information, please visit https://goldpredict.com/