When the Price of Vaneck Gold Miners Etf GDX Talks, People Listen

October 24, 2022, 13:15 pm ET, BY Robert S.- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

This is not EF Hutton, but it could be more #powerful.  A picture speaks a thousand words, they say, and the #priceaction of Vaneck Gold Miners Etf (NYSE: GDX) tells an important story.  The movement tells us where investors perceive value, or the lack of it, and if we pay attention we can capture opportunity.  The data below for GDX can be used as an example, and demonstrate how to do this for other stocks too.  This data was current at the time of publication, but it is not updated in real time here. If you want real time updates, or data on a different stock, please get one here Unlimited Real Time Reports. 

Longer Term Trading Plans for GDX

• Buy GDX slightly over 22.68 target 27.36 stop loss @ 22.61 Details

The technical summary data tells us to buy GDX near 22.68 with an upside target of 27.36. This data also tells us to set a stop loss @ 22.61 to protect against excessive loss in case the stock begins to move against the trade. 22.68 is the first level of support below 23.815 , and by rule, any test of support is a buy signal. In this case, support 22.68 would be being tested, so a buy signal would exist.

• Short GDX slightly under 27.36, target 22.68, stop loss @ 27.44 Details

The technical summary data is suggesting a short of GDX as it gets near 27.36 with a downside target of 22.68. We should have a stop loss in place at 27.44though. 27.36 is the first level of resistance above 23.815, and by rule, any test of resistance is a short signal. In this case, if resistance 27.36 is being tested, so a short signal would exist.

Swing Trading Plans for GDX

• Buy GDX slightly over 27.36, target 32.29, Stop Loss @ 27.28 Details

If 27.36 begins to break higher, the technical summary data tells us to buy GDX just slightly over 27.36, with an upside target of 32.29. The data also tells us to set a stop loss @ 27.28 in case the stock turns against the trade. 27.36 is the first level of resistance above 23.815, and by rule, any break above resistance is a buy signal. In this case, 27.36, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short GDX slightly near 27.36, target 23.46, Stop Loss @ 27.44. Details

The technical summary data is suggesting a short of GDX if it tests 27.36 with a downside target of 23.46. We should have a stop loss in place at 27.44 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 27.36, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for GDX

• Buy GDX slightly over 23.91, target 27.36, Stop Loss @ 23.85 Details

If 23.91 begins to break higher, the technical summary data tells us to buy GDX just slightly over 23.91, with an upside target of 27.36. The data also tells us to set a stop loss @ 23.85 in case the stock turns against the trade. 23.91 is the first level of resistance above 23.815, and by rule, any break above resistance is a buy signal. In this case, 23.91, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short GDX slightly near 23.91, target 23.46, Stop Loss @ 23.97. Details

The technical summary data is suggesting a short of GDX if it tests 23.91 with a downside target of 23.46. We should have a stop loss in place at 23.97 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 23.91, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

GDX Ratings for October 24:

Term →	Near	Mid	Long
Rating	Strong	Weak	Weak
P1	0	0	22.68
P2	23.11	22.29	27.36
P3	23.91	23.46	32.29

Support and Resistance Plot Chart for GDX

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