Gold is still shining in this market. $GDX – January 19, 2023GDX SPY GLD
This is Scott with your Chart of the Day. Despite what’s going on right now with the market ( NYSEARCA: SPY ) hitting clear resistance right at that 400.00 level and still getting rejected from this clear downward sloping trendline, we still are seeing Gold ( NYSEARCA: GDX ) shine in this environment. .
As you can see it is in a nice uptrend and above all the major moving averages. It had a lower open today, opening just under that 8-day exponential period moving average but it was able to push through, close near the range, and do it on higher-than-average volume.
I definitely think Gold ( NYSEARCA: GDX ) is something you should still be watching here in this market. Now, maybe you are not buying here today but maybe you are just keeping an eye on it as it is in consolidation. It really has just kind of gone sideways here for about 10 days or so and that is healthy consolidation within an uptrend.
Also, I want to point out the volume profile. The fact that it pulled back yesterday, and closed near the lows, but look at this volume compared to today. So I really like the fact the buyers came in to support GDX ( NYSEARCA: GDX ) right around that 8-day exponential period moving average.
Watch for a breakout, I think you want to set an alert on GDX ( NYSEARCA: GDX ), maybe around that 32.35 level, which would take you right above this line and you would want to see volume push through.
If I look at GLD ( NYSEARCA: GLD ), it is strong, in an uptrend, and just rolling right now. So definitely keep gold on a screen near you and especially these miners GDX ( NYSEARCA: GDX ), and GDXJ ( NYSEARCA: GDXJ ).