All Clear For GDX? – February 23, 2012

[Billy]

After Wednesday’s strength, the balance of power has shifted to the advantage of floor support clusters. The last important floor level to conquer in this upleg is the 200-day moving average (57.03) before envisioning a long-lasting uptrend for GDX. The GDX MF was once again strong, exceeding the OB level around 1.35%, and the robot is now in a new protected mode. The long position would be exited on the next open if the GDX MF closes back below the adapted OB level. Since ATR jumped to 3.30%, a short signal would likely be issued simultaneously. The rise in volatility also prevented the robot from raising its worst-case trailing stop (52.35).
Billy

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