GDX Robot - February 21, 2012

[Billy]

On OPEX Friday, just like the GDX price, the GDX MF retraced almost 50% of Thursday’s move. It is statistically 1 day away from a potential sell signal and the GDX robot would exit the position at the next open if the MF closes below 0%.




GDX closed right on the 50-day moving average (54.17) and the new Weekly pivot (54.06) which should act as a good support confluence to keep a favorable technical outlook today.
The resistance clusters are strong and we’d like to see a strong RT MF for breaking them soon with conviction.
The worst-case stop at 52.02 has little odds for being hit before a MF signal change.



The IWM robot remains in a fail-safe cash status.

Billy

[Billy]

So far today, Quarterly pivot (54.78), Monthly pivot (55.15) and Weekly R1 (55.44) have been conquered with a very strong GDX MF. This is very positive action.



GDX is now pausing near the dual resistance confluence of Yearly and Semester pivots (55.88) after peaking at Daily R2 (55.82). The fact that it happened without any weakness in the RT MF bodes well for a soon-to-follow breakout of the dual YPP/SPP resistance.
Billy