I have an audio alert set on GDX right at the bottom of my SLOT support zone (78.6% Fibonacci support level) … it activated this morning.
GDX – Daily Chart
As we head into the FOMC interest rate decision next week on December 13th, the market is almost 100% sure that rates are going higher … if that happens, the US dollar should receive a steady bid, and that would lead to a decline in US$ priced commodities like gold. If that happens, gold miners will be sold and as the chart above suggests, price will begin to trend lower.
What if the Fed does not raise rates? That would definitely be a surprise to the majority of the market participants, and likely lead to a huge short covering rally in gold and gold miners. Price for GDX will have completed 3 pushes down into that support event, and be a great level to trade long off of.
I have had my trading hand slapped a couple of times of late, and the best advice I can give anyone here is to sit tight and wait for the FOMC meeting next week.
Cheers … Leaf_West