GDX dominated by bulls lifting the market higher throughout the day
VanEck Vectors Gold Miners ETF (GDX) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, GDX ended the month 6.88% higher at 36.68 after gaining $1.12 (3.15%) today. Today's close at 36.68 marks the highest recorded closing price since May 19th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 35.56, the ETF confirmed its breakout through the previous session high after trading up to $1.16 above it intraday.
Daily Candlestick Chart (GDX as at Jun 30, 2020):
Tuesday's trading range has been $1.50 (4.23%), that's above the last trading month's daily average range of $1.20. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GDX.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 36.44 (now S1), which is likely to act as support going forward. The last time this happened on June 10th, GDX actually lost -4.92% on the following trading day.
Crossing above the upper Bollinger Band for the first time since May 19th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 33.83 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 37.49, upside momentum might accelerate should GDX ETF be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for GDX ETF. Out of 147 times, GDX closed lower 56.46% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 57.82% with an average market move of -1.02%.