{"id":15800,"date":"2020-02-14T07:30:00","date_gmt":"2020-02-14T12:30:00","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=15800"},"modified":"2020-02-14T07:30:00","modified_gmt":"2020-02-14T12:30:00","slug":"expect-a-big-move-in-this-sector","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/expect-a-big-move-in-this-sector\/","title":{"rendered":"Expect a Big Move in This Sector"},"content":{"rendered":"

The gold sector has been frustrating bulls<\/a> and bears<\/a> alike for the past two months. The VanEck Vectors Gold Miners Fund (GDX) has been chopping back and forth in a tight trading range since the middle of December. All of the rally attempts have been stopped short. And, none of the declines could gather any momentum.<\/p>\n

Now though, the gold sector looks poised to make a big move soon, in one direction or the other. Take a look at this chart of GDX…<\/p>\n

\"Chart\"<\/div>\n

The blue lines on the chart show a consolidating triangle formation. This pattern forms as a stock makes a series of lower highs and higher lows. It’s a consolidation pattern – meaning it allows the stock to rock back and forth, building energy for its next trending move.<\/p>\n

As you can see, GDX is approaching the apex of the triangle. So, it’s going to break out of the pattern, one way or another, soon.<\/p>\n

The height of the triangle, measured from the low in December to the high in January, is roughly $2.50. So, the expected move on a breakout of the pattern should be about $2.50 as well. In other words, if GDX breaks out to the upside, then adds $2.50 to the current $28.50 stock price, then we get an upside target near $31.<\/p>\n

That lines up with the next obvious resistance<\/a> level marking last September’s high.<\/p>\n

If GDX breaks to the downside, then the target is the $28.50 current price minus $2.50 – or, $26 per share. That matches the support<\/a> line connecting the lows from last October, November, and December.<\/p>\n

Based solely on this pattern, the odds are about even for a move in either direction. GDX could just as easily move higher as it could move lower from here.<\/p>\n

But, since the Gold Miners Bullish Percent Index ($BPGDM) generated a sell signal last month<\/a>, it seems to me the bears may have a slight edge here.<\/p>\n

Either way, gold stock traders should pay close attention to this chart over the next few sessions and expect a breakout in either direction.<\/p>\n

Best regards and good trading,<\/p>\n

<\/p>\n

Jeff Clark<\/p>\n

Reader Mailbag<\/strong><\/h2>\n

Are you bullish or bearish on gold stocks? Let us know, along with any other questions or comments at feedback@jeffclarktrader.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The gold sector has been frustrating bulls and bears alike for the past two months…<\/p>\n","protected":false},"author":43,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-15800","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/15800","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/43"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=15800"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/15800\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=15800"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=15800"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=15800"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=15800"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=15800"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=15800"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=15800"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}