Now is a great time to watch Gold $GDX – November 2, 2023
This is Scott with your Chart of the Day. I want to take a look at GDX ( NYSEARCA: GDX ), which is the VanEck Gold Miners ETF.
This recently had a really nice rebound starting at the beginning of October, where it was well under all of the major moving averages and had a very sharp reversal back above. If I bring out my handy dandy drawing tool you can see this was actually in a wedge pattern, where it was tightening and tightening, and eventually, it broke out to the upside.
Now, we are getting a bit of a backtest of this move, which is actually very healthy. And so I definitely want to keep an eye on GDX ( NYSEARCA: GDX ) here. And for the heck of it, GLD ( NYSEARCA: GLD ) because this is above all the major moving averages.
But GDX ( NYSEARCA: GDX ), I think, is at a bit of a lower-risk entry here because we are just kind of around that 50-day. We could put a stop loss under yesterday’s low and use that as a defined risk entry if we get a little pop to the upside. So I would want to see this recapture the 50-day moving average to the upside. And then use yesterday’s low as a potential stop-loss area.
Again, I like the fact that GLD ( NYSEARCA: GLD ) is in an uptrend and above all the major moving averages, but it is a bit extended right now from that 50-day. So I believe GDX ( NYSEARCA: GDX ) is offering a better risk/reward, versus that 50-day moving average.
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