GDX is closeing in on its S/H/S target, but we are not there yet...

GDX - Gold Miners

Willem has asked me about the Gold Miners Index GDX and if I think it has finished its move towards the downside.

I agree with Willem, that it's very oversold, but have you ever noticed, that often in very powerful moves, the better part of that move, happens under oversold conditions?

We don't have any divergence between Price and the indicators shown and the first thing I noticed looking at the chart, was the massive Shoulder/Head/Shoulder top, which has a target near 23.00. I think we will see GDX move lower before this decline is over and I would not bet on it before we are closer to the S/H/S target near 23.00.