Jeff’s Note: Last week, my colleague and trading analyst Imre Gams shared how he achieved a 79%-win rate over the past 12 months, while reeling in a 961% return.
It’s thanks to a special trading system he developed… one that allows anyone to trade like pros and achieve exceptional results. He calls it Project X. And it could alter how you approach trading from here on out…
To make sure you don’t miss out on this transformative strategy, click here to watch the replay of this special event.
Gold stocks are one of my favorite markets to trade. Many investors hate gold stocks because they tend to go up and down like a yo-yo.
But that’s exactly what makes them so profitable for traders. Good traders don’t care if the market is going up or down… they just care that there’s movement and volatility.
And if there’s one thing gold stocks are known for, it’s volatility. Back on August 14, I warned readers that the VanEck Gold Miners ETF (GDX) would have to selloff first before setting the stage for a bigger move higher.
I had identified a support zone in GDX spanning between $27.82 and $28.32. At the time, I wrote, “While there could be a bit lower to go, this analysis suggests the bigger move in gold stocks will be to the upside.” You can check out a version of that original chart below.
Last Monday, August 21, GDX struck a low of $27.28 before reversing sharply higher. This is a great initial sign that the decline in GDX is over. As a result, I’ve prepared an updated chart of GDX for you to look at.
The price chart is quite straightforward. There are two important key levels to be keeping an eye on.
A break of each of these levels further increases the odds of GDX reclaiming its May 4 high of $36.26.
If GDX is able to break above $29.56, that opens the door to a much stronger rally over the next several weeks. The subsequent upside target will be the $32.63 level. A breach of this critical resistance level will tell me that the bulls are firmly in control of this market.
Free Trading Resources
Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just click here to check it out.
The last time GDX was trading around $27 was back in March. Back then, GDX exploded higher. Prices rallied from a low of $26.59 to a high of $36.10 in just 24 trading sessions. That’s a move of almost 36%.
The best way to capture these kinds of moves is to be ready for them ahead of time. Trying to catch a runaway train is one way that folks get themselves into trouble. That’s why identifying key levels is my favorite way of being proactive as a trader.
Happy trading,
Imre Gams
Analyst, Market Minute