Gold futures have pulled back nearly $60/oz from last Thursday’s parabolic blow-off high, retracing roughly 38.2% of the entire breakout since late-January:
Gold (Daily)
The $1190-$1200 area now becomes important support; the $60 shakeout since Thursday’s high is standard price action after such an aggressive upside move, however, if $1190 is lost it will begin to look like a typical bear market rally that only served to squeeze out shorts and suck in foolish bulls.
As far as the GDX is concerned we will be focused on the ~$17 level as key support with $20 representing major resistance:
GDX (Weekly)
