The big ETF for precious metals miners, GDX, has a very interesting relationship with the red trendline shown below. For years it acted as resistance (red circles). Late in 2024, it reached escape velocity and broke above this powerful level, only to slip beneath it again recently.
Looking closely, you can see how yesterday’s substantial rally thrust GDX almost precisely to this same resistance level. The H&S reversal is still intact, which I’ve tinted in pink. Yesterday, I purchased June 2024 $36 puts on GDX based on this pattern.
Whether or not we get follow-through is dependent on gold itself, which has the makings of a reversal top but has not completed it yet. A bust out above this tinted semi-circle would probably wreck the chances of a move down with GDX.
