{"id":16196,"date":"2020-06-03T07:30:58","date_gmt":"2020-06-03T11:30:58","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=16196"},"modified":"2020-06-03T07:30:58","modified_gmt":"2020-06-03T11:30:58","slug":"this-pattern-shows-whats-next-for-the-gold-sector","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/this-pattern-shows-whats-next-for-the-gold-sector\/","title":{"rendered":"This Pattern Shows What\u2019s Next for the Gold Sector"},"content":{"rendered":"

The gold sector has been smacked down pretty hard over the past week. And, there’s still more selling ahead.<\/p>\n

The VanEck Vectors Gold Miners Fund (GDX) traded as high as $37.50 per share last week<\/a> – just before the Bullish Percent Index<\/a> for the gold sector (BPGDM) triggered a sell signal.<\/p>\n

Yesterday, GDX traded down to $34. That’s a pullback of almost 7% in just the past week.<\/p>\n

By the look of the following chart, there’s still plenty of room for GDX to fall even more. Take a look…<\/p>\n

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

The action over the past two months has created a small “head and shoulders” pattern on the GDX chart. This is a bearish<\/a> pattern that often signals the reversal from a bullish<\/a> trend to a bearish trend.<\/p>\n

GDX has support<\/a> at the “neckline” of the pattern at about $34. But, if that support fails, and GDX breaks the neckline, then it could quickly head towards the next support level near $30.50.<\/p>\n

That would be a decline of about 20% from last week’s high. And, that would be on par with the 15% decline in GDX last September, and the 18% decline in late February – which occurred right after the last two BPGDM sell signals.<\/p>\n

So, even though gold stocks are lower today than they were when we looked at them last week, there’s still more downside ahead.<\/p>\n

Traders who are hoping to buy into the sector on weakness should stay patient. Gold stocks are still likely to be lower in the weeks ahead.<\/p>\n

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

<\/p>\n

Jeff Clark<\/p>\n

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

In today’s mailbag, Steve and Robert celebrate their recent profits…<\/p>\n

\n

I’ve really enjoyed the Breakout Alert,<\/em> but more importantly, Jeff’s insight into the market and his explanation of what’s happening with every investment. While I gained over 100% in both NVAX and MRAM, I’ve done even better on put options and look forward to the next few weeks as the market hopefully declines. GDX is looking great!<\/p>\n

My wife and I plan on taking the gains and buying a Sprinter Van where we can explore North America while we bike, ski, hike, and surf, or just hang out! Thanks for all your wisdom Jeff!<\/p>\n

– Steve<\/strong><\/p>\n<\/blockquote>\n

\n

MRAM and NVAX were both big winners for me. MRAM netted me a 133% profit. NVAX netted me a 128% profit.<\/p>\n

On a fixed income, making profits like this lets me actually think about taking my amazing wife on a Viking cruise, visiting our granddaughter in Florida, letting my daughter live out her dreams in New York City, and helping out my two grown sons. Looking forward to more!<\/p>\n

– Robert<\/strong><\/p>\n<\/blockquote>\n

Thank you, as always, for your thoughtful comments. We look forward to reading them every day. Keep them coming at feedback@jeffclarktrader.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The gold sector has been smacked down pretty hard over the past week…<\/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-16196","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\/16196","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=16196"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/16196\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=16196"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=16196"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=16196"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=16196"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=16196"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=16196"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=16196"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}