The Gold Stocks had a interesting week this week. The GDX closed above its 50 day moving average and a flag pattern is starting to take shape. If the GDX can manage to breakout above the downtrend we could see a retest of the major resistance zone of 20. Although I still own quite a bit of gold stocks I have placed all my purchases on hold for the time being. I would like to see the GDX recover above 20 before I sink more capital into this sector.
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