Gold mining shares are soaring today after the Federal Reserve voted to keep rates unchanged. Both GDX and GDXJ rose more than 7% at the time of writing and GDX ended the session right at the gap fill level from September 8th at $27.90:
GDX (Daily)
This is the largest single day gain for the gold mining sector since June 3rd when the disappointing May employment report caused the market to push back expectations of a rate hike from the Fed.
The combination of the gap fill at $27.90 and previous support/resistance near the $28.00 level make this an important test of resistance after the strongest rally in more than three months. While we can expect some digestion of today’s gains over the next couple of trading sessions, a bullish MACD crossover and relative strength breaking back above the median line pointing higher offer a decidedly positive technical picture.
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