As an anticipated setup in my last post, GDX is testing the 61.8% fib retracement (26.73) from the August low and the 50 dma (26.81). The 50 dma is also exactly coinciding with daily S3, adding strength to this intraday support area.
We also can observe a potential second right shoulder of a complex inverse head & shoulder pattern forming. And there is another good potential support trendline around 26 to break any violent downside move from here. All short term momentum indicators are oversold and showing the first signs of positive divergence.
The GDX RT MF is trending up and trying to reverse since touching the 61.8% fib low of the day.
I am buying some calls here as the starter for building a new long position with a stop below the uptrend trendline.
Billy
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