Gold Miners at Last Line of Defense

What began as a garden variety pullback after a white hot ~25% rally in the first 3 weeks of the year has turned into a full blown double-digit correction with a retest of crucial support/resistance currently underway:

 

GDX_Daily_2.23.2015

The ~$20 level is the last line of defense, with a decisive breach of this level calling into question the sustainability of the November low. Whereas, if buyers come forth and this turns out to be just another shakeout within the context of a large bottoming process the next leg higher should be at least as large as the December-January leg (~35%) which should bring price up to a big test of previous resistance on the weekly chart:

 

GDX_Weekly

This is shaping up to be an important week for gold (as it tests the psychological $1200 round number level) and the miners which could portend the next large directional move for the precious metals space.