GDX - 10/5/2012 Midday

GDX reversed once again intraday at the lower boundary of the strong resistance cluster ranging from Daily R1 (54.66) up to Yearly Pivot (55.88).

The difference today is a coincidence of a breakout above a consolidation triangle with a measured target to +/- $ 58.10. (the height of the triangle is +/- $4 and added to the breakout point.). GDX is testing the breakout declining line but if it holds above it at the close, I deem it very dangerous to hold shorts over the weekend. If it keeps falling back into the triangle instead it might be followed by a fast move down, likely to the triangle uptrend line.

Notice that the RS of GDX vs. GLD is well above its own triangle limit which is VERY bullish.

The Precious Metals MF is almost flat so far today so its next move might be decisive for the final verdict.
Billy

[ATTACH=CONFIG]16027[/ATTACH]
[ATTACH=CONFIG]16028[/ATTACH]