Simple is usually more effective. The following line chart of GDX simplifies things and highlights the important stuff (trend and relative strength):
Important observations from this chart:
- Trend is clear, from the lower left to the upper right.
- Relative strength (RSI-14) has almost always stayed above the median line since crossing back above it in late January.
- GDX has only experienced one significant bout of selling this year (late May) while accumulation has been steady, and at times, vigorous.
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