{"id":7875,"date":"2018-01-09T07:30:28","date_gmt":"2018-01-09T12:30:28","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=7875"},"modified":"2018-01-09T07:30:28","modified_gmt":"2018-01-09T12:30:28","slug":"the-gold-rally-still-has-legs","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/the-gold-rally-still-has-legs\/","title":{"rendered":"The Gold Rally Still Has Legs"},"content":{"rendered":"<p style=\"background: white; vertical-align: baseline;\"><span lang=\"EN-US\" style=\"color: #333333;\">The gold sector is doing a fine job of working off its short-term overbought condition. <\/span><\/p>\n<p style=\"background: white; vertical-align: baseline;\"><span lang=\"EN-US\" style=\"color: #333333;\">The VanEck Vectors Gold Miners Fund (GDX) hasn\u2019t gone anywhere for a few days. It\u2019s pulled back only slightly off of its recent high, and away from its upper <a href=\"https:\/\/www.jeffclarktrader.com\/glossary#bollingerbands\" target=\"_blank\" rel=\"noopener noreferrer\">Bollinger Band<\/a>. <\/span><\/p>\n<p style=\"background: white; vertical-align: baseline;\"><span lang=\"EN-US\" style=\"color: #333333;\">Meanwhile, since GDX spent most of last week just chopping back and forth and consolidating <a href=\"https:\/\/www.jeffclarktrader.com\/market-minute\/the-action-to-watch-in-gold-this-week\/\" target=\"_blank\" rel=\"noopener noreferrer\">the recent rally<\/a>, its 9-day <a href=\"https:\/\/www.jeffclarktrader.com\/glossary#ema\" target=\"_blank\" rel=\"noopener noreferrer\">exponential moving average (EMA)<\/a> has had a chance to catch up to the current price.<\/span><\/p>\n<p>Here\u2019s an updated chart\u2026 <img loading=\"lazy\" decoding=\"async\" width=\"908\" height=\"711\" class=\"alignnone size-full wp-image-7877\" style=\"width: 100%;\" src=\"https:\/\/jeffclarktrader.com\/market-minute\/wp-content\/uploads\/sites\/19\/2018\/01\/Screen-Shot-2018-01-09-at-11.00.05.png\" srcset=\"https:\/\/jeffclarktrader.com\/market-minute\/wp-content\/uploads\/2018\/01\/Screen-Shot-2018-01-09-at-11.00.05.png 908w, https:\/\/jeffclarktrader.com\/market-minute\/wp-content\/uploads\/2018\/01\/Screen-Shot-2018-01-09-at-11.00.05-300x235.png 300w, https:\/\/jeffclarktrader.com\/market-minute\/wp-content\/uploads\/2018\/01\/Screen-Shot-2018-01-09-at-11.00.05-768x601.png 768w, https:\/\/jeffclarktrader.com\/market-minute\/wp-content\/uploads\/2018\/01\/Screen-Shot-2018-01-09-at-11.00.05-503x394.png 503w, https:\/\/jeffclarktrader.com\/market-minute\/wp-content\/uploads\/2018\/01\/Screen-Shot-2018-01-09-at-11.00.05-613x480.png 613w\" sizes=\"auto, (max-width: 908px) 100vw, 908px\" \/><\/p>\n<p style=\"background: white; vertical-align: baseline;\"><span lang=\"EN-US\" style=\"color: #333333;\">Compare the recent action to the same period last year. The rally off of the December bottom is equally as sharp. <\/span><\/p>\n<p style=\"background: white; vertical-align: baseline;\"><span lang=\"EN-US\" style=\"color: #333333;\">And in January 2017, GDX ran into resistance at its upper Bollinger Band, then found support at its 9-day EMA. And, despite still having overbought conditions on technical indicators like the <a href=\"https:\/\/www.jeffclarktrader.com\/glossary#macd\" target=\"_blank\" rel=\"noopener noreferrer\">MACD<\/a> and <a href=\"https:\/\/www.jeffclarktrader.com\/glossary#rsi\" target=\"_blank\" rel=\"noopener noreferrer\">RSI<\/a>, GDX pushed higher once again off of its 9-day EMA.<\/span><\/p>\n<p style=\"background: white; vertical-align: baseline;\"><span lang=\"EN-US\" style=\"color: #333333;\">While I\u2019d prefer to see more of a pullback in the sector \u2013 perhaps down to the 50-day <a href=\"https:\/\/www.jeffclarktrader.com\/glossary#movingaverage\" target=\"_blank\" rel=\"noopener noreferrer\">moving average (MA)<\/a> \u2013 before adding more exposure, that may not happen. The seasonal forces may be strong enough to fuel another push higher from here.<\/span><\/p>\n<p style=\"background: white; vertical-align: baseline;\"><span lang=\"EN-US\" style=\"color: #333333;\">I\u2019m not doing anything yet. The dollar had a good day yesterday, and it looks like it could push higher over the next session or two. That would likely pressure the gold price lower and maybe get GDX to drop just below its 9-day EMA. <\/span><\/p>\n<p style=\"background: white; vertical-align: baseline;\"><span lang=\"EN-US\" style=\"color: #333333;\">But, traders probably shouldn\u2019t wait for a test of the 50-day MA before adding more exposure in anticipation of a stronger rally.<\/span><\/p>\n<p style=\"background: white; vertical-align: baseline;\"><span lang=\"EN-US\" style=\"color: #333333;\">GDX has support near $23.25. That may be a good spot at which to nibble a bit more.<\/span><\/p>\n<p>Best regards and good trading,<\/p>\n<div style=\"margin-bottom: 20px;\"><img decoding=\"async\" style=\"max-width: 150px; width: 150px;\" src=\"https:\/\/casey-assets.s3.amazonaws.com\/images\/misc\/jeff-clark-signature.png\" width=\"150\" \/><\/div>\n<p>Jeff Clark<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold is looking similar to how it did a year ago, before it went even higher\u2026<\/p>\n","protected":false},"author":25,"featured_media":0,"comment_status":"closed","ping_status":"open","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-7875","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\/7875","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\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=7875"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/7875\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=7875"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=7875"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=7875"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=7875"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=7875"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=7875"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=7875"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}