GDX closes lower for the 3rd day in a row
VanEck Vectors Gold Miners ETF (GDX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, GDX finished the week -2.79% lower at 35.55 after edging lower $0.11 (-0.31%) today on low volume ahead of tomorrow's Memorial Day market holiday. Trading $0.46 higher after the open, the ETF was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on May 12th, GDX actually gained 0.71% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (GDX as at May 22, 2020):
Friday's trading range has been $0.97 (2.7%), that's below the last trading month's daily average range of $1.28. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for GDX.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 34.76 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for GDX ETF. Out of 140 times, GDX closed higher 55.71% of the time on the next trading day after the market condition occurred.