The gold miners have been hit hard this week, but the chart is giving a unique bullish signal. It's fallen so hard it's created a bullish RSI reversal. RSI reversals are when price makes a higher low and RSI makes a lower low over a short period of time. You can see that here between the March 7th low and today's candle.
The risk reward is obviously scewed bullish with price at support, but this pattern is telling us we can target a test of the old highs. It's invalidated below the Mar 7 price low at 25.86. There are a ton of good ways to play it, but I chose to just buy the GDX at 26.15 and use a .50 stop. If we get a push higher I'd like to buy next week's 27-28 call spread currently trading around .20. Good Trading!
