GDX finds buyers again around 20.39
VanEck Vectors Gold Miners ETF (GDX) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
GDX ended the week 2.22% higher at 20.73 after gaining $0.17 (0.83%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (GDX as at May 17, 2019):
Friday's trading range has been $0.37 (1.81%), that's slightly below the last trading month's daily average range of $0.41. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for GDX.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. In spite of a weak opening the ETF managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
GDX ETF managed to close back above the 20-day moving average at 20.69. After having been unable to move lower than 20.41 in the previous session, the market found buyers again around the same price level today at 20.39. The last time this happened on May 9th, GDX actually lost -0.73% on the following trading day.
GDX shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could speed up should prices move above the close-by swing high at 21.02 where further buy stops might get activated. With prices trading close to this year's low at 20.14, downside momentum could accelerate should the ETF break out to new lows for the year. As prices are trading close to May's high at 21.10, upside momentum might speed up should GDX ETF mark new highs for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for GDX ETF. Out of 71 times, GDX closed lower 57.75% of the time on the next trading day after the market condition occurred.