Jordan feels that the correction in GDX is close to being over. Top to bottom GDX has corrected by 17% over the past month, which is typical and healthy. Gold is gaining relative strength compared to the S&P and silver and will likely hold up at these levels. It's building a tight consolidation that will eventually give way to a much higher move. Jordan can't see anything in the markets currently that would be negative for gold. Silver is still setting up for a move to $21. Once that target is reached, there is little in the way of resistance until $27.
Time Stamp References:0:40 - Recent correction in GDX is almost over.6:00 - GDX.J performance and overcoming resistance.10:00 - Gold's bull market compared to general stocks.14:45 - US Dollar and possible affects on gold.
Jordan Roy-Byrne, CMT is a Chartered Market Technician and member of the Market Technicians Association.. He is the publisher and editor of TheDailyGold Premium, a publication which emphasizes market timing and stock selection for the sophisticated investor, as well as TheDailyGold Global, an add-on service for subscribers which covers global capital markets.